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Former Member
Nov 09, 2012 at 11:28 AM

when to use refurbishment ?


Hi ,

We all know refurbishment orders settle cost to material . Hence in balance sheet , the value of material will be shown in inventory account .

Usually euipment are procured initally as project materials , captialised and created as assets . The asset value will also show up in balance sheet .

Now if I create serial numbers for these equipment and use refurbishment process again material value will get shown up in balance sheet .This is redundancy .

I was told that if equipment is already capitalised as assets , refurbishment process can not be used . Is this right ?