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We have multiple fixed assets that have less that $1.00 in their book value after they have reached the end of their depreciation period. Why did they not depreciate fully, and how do we get rid of these amounts in the Fixed Assets?
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Hi
If you check under "FA Posting Groups" you will see the GL accounts used by NAV for posting, by default the Write-Down and Appreciation account columns are not visible so you will need to show them
You will need an offsetting account to post this write down to yes
The write down value in the journal will be a negative (The system will give an error if you use the wrong sign)
The entries will appear with a type of "Write-Down" and the posting will be to the GL account specified in the setup from my first point
Cheers
Neville
Thanks for the info, Neville. We will create the FA journal to clear these out. However, we have a few questions before we do so. First, where do we find the g/l accounts these journal entries will apply to? Second, do we need an offsetting entry? Third, should we enter the figures as positive or negative? Last, will these entries appear as disposals of fixed assets or just depreciation entries? Thank you.
Hi
There are two things that affect this (Both Below)
If you look at the Depreciation Books, and open the book in question (The one specified on the asset if you have more than one)
Under the general section there is a field called Default Final Rounding Amount, when the value drops below this amount the system automatically finishes the asset
The next field is the Default ending book value, the system will not depreciate below this value
In some countries you cannot have and asset at 0, the laws require that it always have a value, so this field is set to $1 and the system drops the asset to this value
So i'm guessing this will not be the case in your country though you should talk to your finance people to be sure
Set the first figure to the number that the system must close the asset below, you may want it at $1 (Or higher if you want the system to shut the asset below for example $5)
Next to fix the currently open entries:
Create a FA journal and use the Write-Down type to remove the last bit off the asset
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