Reversing depreciation

This page allows you to reverse the depreciation processed by process run number. Tell me more.

Select the “Reverse Depreciation” link at the bottom of the “Asset Deprecation Processingt”business component.

The “Reverse Depreciation” page appears.

The system displays the following fields:

Reversal Document #.

The number identifying the reversal document. The document number is automatically generated by the system at the time of reversal based on the numbering pattern selected.

Enter the following fields in the “Reversal Information” group box:

Reversal Type	Use the drop-down list box to select the basis on which the depreciation has to be reversed. The reverse options available are By Process Run - Indicates that the depreciation can be reversed for all the assets belonging to the process run number. Within a run #, period-wise reversal can be done. By Asset Run - Indicates that the depreciation can be reversed for an individual asset. The system displays the “By Process Run” by default on launch of the page.
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.
Depreciation Book Code	The code identifying the depreciation book.
Finance Book	The code identifying the finance book in which the reversal entries are to be posted. All the posting finance books defined for the company of login OU will be listed if “Corp” is specified as the depreciation code; else the system leaves the field blank.
Financial Year	Use the drop-down list box to select the financial year in which the depreciation that you want to reverse was processed. All the open financial years along with the current financial year will be available for selection. The system displays the current year by default.
Reversal Date	The date on which the document is to be reversed (Date Format). Mandatory. The system displays the system date by default.

Enter the following fields in the “Search Criteria” group box to search for an asset:

Financial Period	Use the drop-down list box to select the code identifying the financial period. The system lists all the open and provisionally closed financial period for the depreciation book selected. The system displays the earliest financial period by default on launch of the page.
Process Run No.	Use the drop-down list box to select the number identifying the process run. The system lists all the run number with the “Confirmed” or “Partially Confirmed” status. The system leaves the field blank by default on launch of the page. This field is mandatory if the “Reverse Option” is “By Process Run”. The system displays the last processed depreciation run.
Asset Class	Use the drop-down list box to select the code identifying the asset class. All the “active” classes defined for the login OU will be available for selection if the reversal type is specified as “By Asset No.”, else the system leaves the field blank. Note that if this field is selected, system lists all the depreciation processes on assets that were processed using the selected asset class. The system displays “All” by default.
Asset No.	The code identifying the asset (Alphanumeric, 18). Leave this field blank if “By Process Run” is specified as the reversal type. Help facility available.
Tag No.	The code identifying the asset tag (Alphanumeric, 18). Leave this field blank if “By Process Run” is specified as the reversal type. Help facility available.
Depreciation Category	Use the drop-down list box to select the depreciation category. The system lists all the depreciation categories defined in the “Create Depreciation Setup” activity of the “Asset Depreciation Setup” business component. Note that categories are listed in this field only when “By Asset” is specified as the “Reversal Type”. If any specific values are selected in the Asset Class drop down box, then all the Depreciation Categories that are associated to the selected asset class will be made available for selection.
Cost Center	The code identifying the cost center in which the assets are logically grouped (Alphanumeric, 10). The cost center must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component. Leave this field blank if “By Process Run” is specified as the reversal type. Help facility available.
Analysis #	The code identifying the analysis number in which the assets are logically grouped (Alphanumeric, 10). The analysis number must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component.
Subanalysis #	The code identifying the subanalysis number in which the assets are logically grouped (Alphanumeric, 10). The subanalysis number must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component.

Note: If any specific cost center is provided, then system retrieves those depreciation processes that have posted to the specified cost center and not based on the current association of assets to cost centers.

Click the “Search” pushbutton to reverse the details.

The system retrieves the following fields in the “Search Results” multiline:

Note: The system retrieves the asset / tag that are in “Confirmed” status.

Process Run No.	The number identifying the process run.
Financial Period	The financial year in which the depreciation process has posted financial entry.
Asset No.	The number identifying the asset whose depreciation details are to be reversed.
Tag No.	The number identifying the asset tag.
Asset Class	The code identifying the asset class to which the asset & tags belonged during the actual depreciation processing that is getting reversed now.
Depreciation Category	The category under which the actual depreciation got processed
Posting Cost Center	The cost center to which the depreciation expense got posted during the actual processing.
Analysis #	The code identifying the analysis number in which the assets are logically grouped.
Subanalysis #	The code identifying the subanalysis number in which the assets are logically grouped.
Depreciation charge	The depreciation charged on an asset.
Suspension Depreciation	The depreciation charged for an asset during the suspension period.
Depreciation Rule No.	The number identifying the depreciation rule applied on an asset for processing depreciation.

The system displays the following fields below the multiline:

Depreciation Total	The sum total of all the depreciation charged for an asset, in the mulitline.
Suspension Total	The sum total of the depreciation charged on an asset during the suspension period.

Check the box in the “Select” column of the multiline to mark the depreciation for reversal.

Click the “Compute” pushbutton to retrieve the total depreciation and total suspension of the process runs in the multiline selected for reversal.

Click the “Reverse” pushbutton to reverse the entries generated during creation.

Note: Atleast one row in the multiline must be marked for reversal.

The system updates the status of the cap. document processed for reversal as “Reversed” and these records available for depreciation processing again.

Note: A process run cannot be reversed if the assets-tags belonging to this run are processed under different process runs unless, previous such process runs are also reversed. Also, reversal of process runs can be effected only chronologically. Depreciation on an asset-tag for a given period cannot be reversed if a depreciation process exists on the same asset-tag for a period subsequent to the one selected for reversal, unless the subsequent period’s depreciation is also selected for reversal.

Reversal date must be greater than or equal to the financial period end date with status “Confirmed” and greater than or equal to depreciation process upto date if status is “Partially Confirmed” for the selected Asset Tag combination.

The system generates the document number based on the numbering type selected. The system posts the accounting entries in the “Corporate” and “Tax” depreciation books. The system updates the status of the asset/tag selected to “Unprocessed” .

Note: Account postings for reversal will be made in the same period in which the original depreciation process has posted provided, the books are still open on the reversal date. If on the reversal date, the books are closed for the periods in which the actual processing has posted, then the posting for the closed periods alone will get posted in the first open period.

To proceed, carry out the following

Select the “Accounting Information” link at the bottom of the page to view the accounting information.

Reversing the depreciation – An overview

This page allows you to search and select the asset/tag combination for reversal of depreciation. The depreciation process run can be reversed, if the process run number is in “Confirmed” status. You can reverse the depreciation charged for an individual asset or for all the assets in the process run. If for an asset the class of which is mapped to the usage ‘’Capitalised Maintenance Expenses’’ the depreciation is reversed then the depreciation processed for ‘’Capitalised Maintenance Expense’’ will also be reversed. You can retrieve the asset/tag combination by carrying out the search using the , financial period, the depreciation category, the number identifying the asset and tag, and the code identifying the posting cost center.

The system retrieves the details based on the search criteria. The system computes the depreciation total and the suspension total. You can provide the reversal information like the reversal date and the numbering type in the reversal informatton group box. The system generates the document number based on the numbering type selected. The system posts the accounting entry in the depreciation book. The system credits the revaluation reserve if the revaluation depreciation is an upward revaluation. The system updates the status of the asset/tag selected to “Unprocessed” and updates the status of the revaluation depreciation processing to “Unprocessed”.