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Fixed asset disposal with depreciation adjustments posting to wrong account

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Posted on by MD-26070020-0

I am trying to do a disposal for an asset and the voucher that is created is as follows:

I thought the depreciation adjustments from the disposal would have cleared the depreciation adjustment booked on July 31 in the above example. It appears from the screen shot that they do clear, however, the depreciation adjustment for $20,484.61 is booked to the expense account whereas the depreciation adjustment (this year) -$17,102.05 is booked to the gain/loss account. I checked the depreciation posting profile for disposals and the depreciation adjustments (this year) and depreciation adjustments (prior year) have the accumulated depreciation account as the main account and the gain/loss account as the offset. Not sure why then the disposal is posting the depreciation adjustment for $20,484.61 to the expense account. This is throwing of the NBV calculation. Can anyone explain why?

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André Arnaud de Cal... 305,150 Super User 2026 Season 1 on at

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Hi,

Can you share the setup you have for the disposal parameters? Did you sell the asset with a free text invoice or did you dispose the asset using a journal?

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MD-26070020-0 14 on at

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Hi André,

I disposed of the asset using a fixed asset journal. See below posting profile for Disposal - Scrap related to depreciation adjustments. I am assuming the depreciation adjustment in the above example is hitting the expense account based on the Depreciation adjustment profile and not the Disposal profile, but I'm not sure why.

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André Arnaud de Cal... 305,150 Super User 2026 Season 1 on at

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Hi,

Do you have more lines for the disposal parameters, like a line for the net book value and acquisition values this year and prior years?

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MD-26070020-0 14 on at

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Hi André,

See below for the full "Disposal - Scrap" posting profile for the asset group in question and all books.

Thanks,

Monique

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André Arnaud de Cal... 305,150 Super User 2026 Season 1 on at

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Hi,

Did you have only 4 transactions for this asset before posting the disposal? Can you share a screenshot of the journal line where you disposed the asset?

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MD-26070020-0 14 on at

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Yes, there are only 4 transactions posted for the asset. It was created this past May in the default CORP (US GAAP) book as part of a re-componentization process and values were imported to a new IFRS book on July 1.

Below is the screenshot for the journal entry. The journal was entered in the CORP book. For the Disposal - Scrap transaction type, the IFRS book is derived. The accounts are correct based on the transaction type and the posting profile setup for depreciation adjustments but am wondering why the adjustment doesn't follow the "Disposal - Scrap" posting profile below. To note, I get the same behaviour if the books are not derived, and the journal is entered to the IFRS book directly.

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LB-07041152-0 66 on at

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Hi,

I know this is an old post, but try to switch off this parameter:

Regards,

Lira

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