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Recently a fixed asset had a cost adjustment made to it in the Fixed Asset Card. Depreciation was ran and now the Fixed Asset clearing account is out of balance by the amount of the cost adjustment.
How can we fix this?
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I should have Clarified one more thing. The cost adjustment made was in error. The cost adjustment was adding value to the asset. When depreciation was ran the fixed asset clearing account made to large of a credit and thus now we have a credit balance matching the amount of the cost adjustment.
I do agree that a journal entry is needed, however my real question is on the cost basis adjustment. If I make another cost basis adjustment to the asset correcting the previous adjustment will that cause another error next month when depreciation is run.
I have been through such a case before, and I would absolutely confirm Mr. Frank's comment about being related to cost adjustment behavior.
Unfortunately, you need to go through a manual correction on the General Ledger level.
Use a journal entry to fix it. Personally, I think this is a bug in the way Cost Adjustment works. it should not affect the clearing account one iota just because the Acquisition Cost is adjusted.
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André Arnaud de Cal...
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