Adjusting Historical Information

How can I adjust the historical information for an asset that has not been previously depreciated in the system?

Assets which have not been previously depreciated in the system cannot be adjusted using the Activities>Fixed Assets>Review/Adjust Depreciation form because you can go directly to the asset record (Maintain>Fixed Assets>Assets) to adjust the historical information. Historical information includes last date of depreciation, accumulated depreciation amount, and number of months previously depreciated.

How can I adjust the accumulated depreciation amount for an asset that has been previously depreciated in the system?

Once an asset has had depreciation calculated and transferred in the system, you will notice that the asset record no longer allows you to edit the historical amount depreciated. To adjust the accumulated depreciation of an asset you must enter an adjustment using the Activities>Fixed Assets>Review/Adjust Depreciation form. The adjustment entry must be dated on or prior to the last depreciation date and cannot be made to a closed year. Additionally, the adjustment entry will update not only the asset record accumulated depreciation figure; it will also generate an adjusting entry for your General Ledger that will be available for transfer. Note that this adjustment does not update the last depreciation date or number of depreciated on the asset record.

How can I adjust the number of months depreciated for an asset that has been previously depreciated?

You cannot make adjustments to the number of months depreciated once an asset has had depreciation calculated and transferred in the system. Your options are to either:

  1. Increase/decrease the life of the asset so that it will depreciate the appropriate number of months - note that an adjustment to the life of an asset does not change the depreciation amount taken each depreciation period.
  2. Copy the Asset to a new Asset ID and then change the status of the original Asset ID to "discontinued/disposed" on the asset record (do not process a disposal because you do not need any accounting entries for this transaction). On the new asset, you will want to reference the previous Asset ID in the Original Asset ID box. The new asset will allow you to edit the number of months depreciated.