Posting an Adjustment for a FA in Closed FA Year

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Posted on by Renee Leung

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Is it possible to post an adjustment for Fixed Assets in a closed year? A credit memo was received in 2013 for an invoice booked in 2012 as a fixed asset purchase. Is it possible to reflect this credit memo as a 2012 adjustment to the FA and adjust the prior year's cumulative depreciation?

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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I haven't tested it but it should be. Do you have a test company you can try this in? If you want to post the GL effect in 2012, you'll need to open the appropriate period, otherwise, you could post the depreciation adjustment to the GL in 2013.

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Leng Papio 855 on at

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Can you clarify on the term 'Post an adjustment in FA'?

Do you mean you just need to adjust the cost basis of the booked asset and reflect the changes in year 2012?

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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No, when you update the Cost Basis of the Asset in FA, a general ledger entry for the adjustment will be made the next time you run the GL posting. I was referring to posting the GL batch that is created from the FA adjustment you've made. The resulting entry to the GL is made to keep the GL and FA ledger in balance.

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Leng Papio 855 on at

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sorry Frank,, i was asking R1012 to clarify what he meant...

you don't really post to FA.. you depreciate and make other transactions that create GL entries which you will interface and post to GL... but you don't post... so i am not sure what exactly he meant.

so which exactly needs to be adjusted?

a credit memo sounded like the cost basis of the asset should be reduced... but i am not clear.

if what i think R1012 meant is to change the value of the asset that can be depreciated (essentially the cost basis), then it can just be adjusted in the asset book and FA will do it's thing when you do a recalc or a reset.

but i was not very clear with the question.

sorry for the confusion.

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Mehtab Hassan 80 on at

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Frank answered is looking more appropriately because i checked it earlier on test company .but tell me one thing frank can we adjust depreciation in that period also?

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Yes, you can, as long as the period is open to allow posting. If the adjustment is made in 2012 and 2012 is closed, GP will automatically create an entry to update the Balance Sheet and P&L accounts and Retained Earnings and roll the adjustment forward to update 2013 beginning balances.

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Renee Leung 6,775 on at

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Just to recap everything, to make the adjustment, i'll adjust the cost basis, which recalculates depreciation for me. Then, I'll need to create a batch in GL, reopen the closed period for Financials and post the GL batch to the prior year. I'll also need to reopen the Book Year but which year would I reopen to? If recalculating depreciation since the Asset's Life, would I have to set Book Year to the year during which the asset was acquired?

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