FA - Book Value 01

markborges · 2008-09-03

Hi everybody.

I searched the forum with a answer but I couldn't find it.

I have an Asset that was acquired on a specific Cost Center (Cost Center is my Global Dimension 1)... let's use A111, for example.

Then my Asset has depreciated for 1 year in this Cost Center... Later, we need to move this Asset from Cost Center A111 to Cost Center F111, and it continues its depreciation normally.

When I print a Book Value 01, grouped by Global Dimension 1 [which is Cost Center], BEFORE the move, it shows the correct depreciation for my Asset. AFTER I move the Asset to the other Cost Center, it shows all the depreciation of my asset in cost center F111.

Is this a standard funcionality? Is this correct? In my point of view, the depreciation needed to be seen correctly as time goes by.. If my asset depreciated $ 500.00 in A111 and $ 700.00 in F111, then the book value should show $ 500.00 and $ 700.00 respectively for each cost center, instead of $ 1.200,00 only for F111.

Does anybody agree?

Thanks in advance,

idiot · 2008-09-04

It is commonly practised to move the entire cost + depreciation from one cost center to another, so what you had is pretty normal.

To achieve what you require, dispose the asset from A111 & acquire the asset again in F111.

baggyone · 2008-09-04

Hi
The book value 01 report will group the report by the dimension 1 or 2 that is on the Fixed asset at the time, the report does not filter the FA Ledger entries, so it will bring out all ledger entries even if you have changed the dimension on the FA a number of times.

Cheers
Pete

ssingla · 2008-09-04

In addition to changing Global Dimension on the FA card you should post the transfer entry thru FA reclassification Entry.
This will post transfer entries in FA ledger entry and to G/L (if Integration is marked true). Your Balance sheet & Income Statement will then show correct balance.

markborges · 2008-09-04

idiot wrote:

To achieve what you require, dispose the asset from A111 & acquire the asset again in F111.

Hi "idiot", if I do that, I'll have an acquisition cost in my accounting period that is not right. I also thought of that. Thanks.

Basically, ssingla and idiot said that it is normal to move all cost + depreciation from one cost center to another, but if our accounting is based on cost center, and all the past months are already "closed".... don't you think it's anormal to "change" the asset's past result while moving its depreciation???

:-k

Thanks baggyone for your reply, too.

ssingla · 2008-09-04

1 JAN 2005 Cost Centre 1 Asset Acquired 10000

Year 1 Depr. Cost Centre 1 USD 1000
Year 2 Depr. Cost Centre 1 USD 1000

Year 3 JAN 1 2007 TRF to Cost Centre 2

Entries in Cost Centre 1 :

Asset Account 10000 Credit
Accumulated Depr 2000 Debit
Cost Centre 2 8000 Debit

Entries in Cost Centre 2:

Asset Account 10000 Debit
Acccumulated Depr 2000 Credit
Cost Centre 1 8000 Credit

FA depr for the year will be posted in Cost Centre 2.

Hope that clears the doubt...

idiot · 2008-09-05

markborges wrote:

idiot wrote:

To achieve what you require, dispose the asset from A111 & acquire the asset again in F111.

Hi "idiot", if I do that, I'll have an acquisition cost in my accounting period that is not right. I also thought of that. Thanks.

Basically, ssingla and idiot said that it is normal to move all cost + depreciation from one cost center to another, but if our accounting is based on cost center, and all the past months are already "closed".... don't you think it's anormal to "change" the asset's past result while moving its depreciation???

:-k

Thanks baggyone for your reply, too.

You will also have a disposal for the period which will cancel out the effect of the acquisition cost. Depending on your requirements you could just just FA Journal which will not have any impact on your G/L...

markborges · 2008-09-05

idiot wrote:

You will also have a disposal for the period which will cancel out the effect of the acquisition cost. Depending on your requirements you could just just FA Journal which will not have any impact on your G/L...

My real problem is that our users must send financial information to Corporate, and if they see that there was a Acquisition Cost in a cost center, and a Disposal in another cost center... if the report isn't clear enough, they will never see this "cancel effect" and they will send wrong information (they will send both Acquisition and Disposal)...

Ssingla, now you made it very clear for me... I'll ask my users whether they should be moving the Accumulated Depreciation as well as they move the asset from one CC to another.... Today, we only change the Asset Dimension Cost Center to the one we need, without doing any further postings.... this means... on the chart of accounts, this asset was never ever moved!

Thanks for the tip you both!

FA - Book Value 01

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