Fixed Asset Adjustments

The Fixed Asset Adjustment is intended to fix an error on the book value entry of the asset or the Accumulated Depreciation.

The software behaves in different ways depending if the value was entered on the CURRENT financial year or in the PREVIOUS financial year:

Adjusting Purchase Value

If an asset is purchased/dated on the current Financial Year, the value goes to the Plus Purchases field and does not update the opening year balance field until the Financial Year is closed off, hence why when trying to do an adjustment first time on the asset, you will see that the value the utility will pick up is 0.

So, if this is the case, then on the adjustment you should enter the amount by which you need to correct the asset.

For example, the value on plus purchases is 17K and it needs to be reduced to 15K: you enter a negative 2k on the adjustment field.

This will create the credit transaction on the asset and will now show -2k on opening year balance, 17K on plus purchase and 15k on current book value.

This happens because the Plus Purchases value is not transferred to the Opening Year Value until the FINANCIAL YEAR is closed off, but the important thing is that your current book value is now correct and new depreciation transactions will be calculated correctly.

If the asset was purchased on a previous FINANCIAL YEAR, then you will see on the book value tab that the asset has only an opening year balance and no plus purchases (unless an INCREASE VALUE was entered). So, when you open the adjustment screen, this asset will have a value different than zero, this value will be the same as in the opening year balance field.

To adjust in this case, it works a bit different than the previous example.

For example, the opening year value is 15K at this moment, but actually the correct value should be 13K: to achieve this, you enter a positive 13K on the adjustment field (yes, instead of entering a figure which will reduce or increase the value, you have to replace it with the final value you want the asset to show)

This will create a transaction (a credit of 2K  in the case of this example) that will reduce the original value and on the book value tab you should see (regardless of depreciation) an opening year value of 13K and 0 on plus purchases – the current book value will be also 13K.

Adjusting Accumulated Depreciation

If the accumulated depreciation is incorrect, simply enter the value it needs to have in this field (replace).

Please note that adjustments made to Purchase Value and Accumulated Depreciation will affect the Current Book Value of the asset from the moment the adjustment is made onwards. Depreciation transactions already entered in the current financial year will not be recalculated.