Reversing depreciation adjustment

This page allows you to reverse the documents that are in “Active” status. Tell me more.

Select the “Reverse Depreciation Adjustment” link at the bottom of the “Select Document” page.

The “Reverse Depreciation Adjustment” page appears.

The system displays the following fields:

Reversal Document No.	The document identifying the document generated for reversing the original document.
Depreciation Book Code	The code identifying the depreciation book.
Document Status	The status of the document.

Enter the following fields:

Reversal Date	The date on which the document has to be reversed (Date Format). Mandatory. The reversal date must be later than the processing date.
Numbering Type	Use the drop-down list box to select the numbering pattern. All the numbering types of transaction type ”Reverse Depreciation Adjustment “ are listed by the system for selection. Numbering type must have been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component.

The system displays the following fields:

Finance Book	The code identifying the finance book in which the entries are posted.
Document No.	The number identifying the original document.
Transaction Date	The date on which the document was generated.
Posting Cost Center	The code identifying the cost center in which the entries are posted.

The system displays the following fields in the “Asset Information” multiline:

Asset No.	The number identifying the asset.
Tag No.	The number identifying the asset tag.
Dr / Cr	Indicates whether the depreciation charge is a debit or the credit balance.
Depreciation Charge	The depreciation charged on an asset.
Remarks	Any comments regarding the depreciation adjustment.

Enter the following fields below the multiline:

Remarks

Any remarks pertaining to reversal of the document (Alphanumeric, 100).

The system displays the following field:

Depreciation Total

The depreciation total is incremented with all the depreciation charge amounts entered with debit and decremented by all depreciation charge amounts entered with credit.

Click the “Reverse” pushbutton to reverse the depreciation adjustment.

Note: The depreciation processing status must be in “Processed” status before reversal.

If the “Allow below book value” parameter has been set to “No” in the “Asset Depreciation Setup” business component and the depreciation charge is a credit balance, then the depreciation charge specified for the Asset / Tag including the opening cumulative depreciation must not exceed the Asset / Tag cost.

The cost center must have been mapped to the depreciation account code and the revaluation depreciation account code.

The system computes the depreciation total. The system generates a unique document number for reversal based on the numbering pattern specified. The system updates the status of the document to “Reversed” after reversal.

Reversing depreciation adjustment – An overview

The system displays the original document details like the number identifying the document, the date on which the document was generated and the cost center in which the accounting entries are to be posted, the depreciation book code and the finance book where entries are to be posted. You must specify the date on which the documents must be reversed and the numbering type based on which the reversal document number is generated.