Adjusting the Acquisition Cost of an active Fixed Asset will generate a 'Placed In Service - Adjustment' posting for the difference between the original amount and the adjusted amount. The monthly depreciation amounts will then be adjusted moving forward from the effective date.
Editing the Acquisition Cost
Follow these steps to edit the Acquisition Cost:
- Enter the new Acquisition Cost on the 'General' tab.
A confirmation dialogue box will open. - Select 'Yes, Update Asset Cost and Depreciation Schedule'
The dialogue box will be expanded with new options
- Select the Effective Date
- Important Note: If the last day of the Period is the Effective Date, the Depreciation posting for that Period will be removed. It is assumed that the Deprecation for that Period is included in the new Acquisition Cost.
If the desired postings should include both the 'Placed In Service - Adjustment' and the Deprecation for the Period, any other date in the Period can be used.
See posting examples below to see the difference in how the date choice impacts the posting.
- Important Note: If the last day of the Period is the Effective Date, the Depreciation posting for that Period will be removed. It is assumed that the Deprecation for that Period is included in the new Acquisition Cost.
- Select the offset account
- Click 'Submit'. The 'Books' tab will open
- Confirm the Effective Date for the change, then click 'Submit'
- Click either 'Post Now' to open the Depreciation Form and post the Depreciation Records, or click 'Post Later' to return to the 'General' tab and post the Depreciation Records at a later date.
- Note: The 'Placed In Service - Adjustment' will post now regardless of which method is chosen to post the Depreciation Records.
- Best Practice: If the Effective Date is in a prior Period, click 'Post Now', then post any past Depreciation Records that have been adjusted. This ensures that they are not missed when the Depreciations for the next Period are posted.
- Note: The 'Placed In Service - Adjustment' will post now regardless of which method is chosen to post the Depreciation Records.
Acquisition Cost Adjustment Posting Example
Effective Date Within the Period
1) Prior Period Depreciation - Depreciation for the Period prior to Acquisition Cost adjustment
2) Place In Service - Adjustment - The change to the Acquisition Cost
3) Current Period Depreciation - Depreciation for the current Period after the change to the Acquisition Cost
Effective Date as the Last Day of the Period
1) Prior Period Depreciation - Depreciation for the Period prior to Acquisition Cost adjustment
2) Place In Service - Adjustment - The change to the Acquisition Cost
- Replaces current Period Depreciation.
3) Next Period Depreciation - Depreciation for the next Period after the change to the Acquisition Cost