There is a depreciation adjustment posted for a fixed asset. When user scrap fixed asset, the voucher is wrongly calculated, it ignores the depreciation adjustment. The accumulated depreciation should contain depreciation adjustment. But it does not.
For example: Fixed asset balance before scrap as below
- Acquisition: 1000
- Depreciation: -955.11
- Depreciation adjustment: -44.89
- Net book value: 0
When fixed asset is srap, the voucher is posted as below:
Accumulated depreciation: 56.45 (Depreciation prior years)
Fix assets gain/loss: -56.45
Accumulated depreciation: 898.66 (Depreciation this year)
Fix assets gain/loss: 898.66
Tangible Fixed Assets : -1000
Gain & Loss - Disposal of Assets: -1000
(net book value =0 so there is no entry for net book value)
The total accumulated depreciation is: 898.66+56.45 = 955.11 <> Acquistion price = 1000
The total accumulated depreciation neglects amount of Depreciation adjustment = -44.89 (44.89 + 955.11 =1000)
I refer to this document. There is explanation for depreciation adjustment.
docs.microsoft.com/.../dispose-of-a-fixed-asset-as-scrap
Please help to advice. Any suggestion would be appreciated!
