Fixed Asset - Catch Up Depreciation

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Posted on by DanielGarcia

Scenario: There is a fixed asset which was not capitalized when it was initially placed in service (PIS. The actual in service date was several months ago on 3/1/23. How can I place this asset in service with the correct PIS date of several months ago and subsequently post the depreciation for all months since up to today?

If I do a regular acquisition proposal to PIS with the date of 3/1/23, this will post the entry on that date and will affect prior periods which are already closed. Ideally I would like to post that actual transaction with a current date and backdate the PIS date to 3/1/23 so as to not affect prior closed periods. If that is possible, will I then be able to run a depreciation proposal for all the periods missed and post with a current date?

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Frank Hamelly | MVP... 46,625 Moderator on at

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1. Enter the acquisition manually - don't use the proposal. Enter the offset account = fixed asset account so there's no GL effect upon posting @ 3/1/23.

2. Manually calculate and enter a depreciation journal for accumulated depreciation thru the current date. Post it on the desired date.

I don't believe the system will let you record a placed-in-service date prior to the acquisition date. Logically, this would make no sense.

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