About adjusting an asset's cost using an AP adjustment—Fixed Assets Management

Increase or decrease an asset's cost directly from an AP adjustment. Use this option to correct asset costs after capital improvements, revaluation, or earlier acquisition errors.

When you post an AP adjustment that changes an asset’s cost, Fixed Assets Management automatically does the following:

  • Increases or decreases the asset's cost.

  • Recalculates any Not posted depreciation entries.

  • Records the adjustment on the asset's Cost adjustments tab.

The following restrictions apply to AP adjustments that change an asset's cost:

  • After the adjustment is posted, it cannot be edited. To make changes, create a new adjustment.

  • After an asset is adjusted, you cannot edit its Asset classification or Asset GL account fields. You also cannot edit its Asset cost field directly. To change the cost, create another adjustment.

  • Assets with cost adjustments cannot be deleted. Delete the associated AP adjustment before deleting the asset.

  • Transfers dated before the adjustment cannot be reverted.

  • Depreciation entries posted before the adjustment cannot be reverted.

How depreciation schedules are updated

Depreciation schedules are updated in the following way to reflect the new asset cost:

  • Remaining depreciation is recalculated. Not posted depreciation entries are updated according to the depreciation method.

  • Total accumulated depreciation is not changed. Posted and Historically posted depreciation entries remain the same.

Example: AP debit memo adjustment

AP debit memo adjustment example
  Before adjustment (R) After adjustment (R)
Asset cost 2,500 1,500
Posted depreciation (1 year) 500 500
Net book value 2,000 1,000
Remaining depreciation 2,000 over 4 years 1,000 over 4 years
Monthly depreciation 500 250

Depreciation schedule

Depreciation schedule
Period Scheduled posting date Depreciation amount before adjustment (R) Depreciation amount after adjustment (R) State
1 December 31st, 2026 500 500 Posted
2 December 31st, 2027 500 250 Not posted
3 December 31st, 2028 500 250 Not posted
4 December 31st, 2029 500 250 Not posted
5 December 31st, 2030 500 250 Not posted

Example: AP credit memo adjustment

AP credit memo adjustment example
  Before adjustment (R) After adjustment (R)
Asset cost 2,500 3,500
Posted depreciation (1 year) 500 500
Net book value 2,000 3,000
Remaining depreciation 2,000 over 4 years 3,000 over 4 years
Monthly depreciation 500 750

Depreciation schedule

Depreciation schedule
Period Scheduled posting date Depreciation amount before adjustment (R) Depreciation amount after adjustment (R) State
1 December 31st, 2026 500 500 Posted
2 December 31st, 2027 500 750 Not posted
3 December 31st, 2028 500 750 Not posted
4 December 31st, 2029 500 750 Not posted
5 December 31st, 2030 500 750 Not posted

Editing an AP adjustment with an asset cost adjustment

You can edit an existing AP adjustment to add an asset cost adjustment, as long as the adjustment does not already include an asset to adjust. After an AP adjustment is posted with an asset to adjust, it cannot be edited. To change the asset cost after posting, create a new AP adjustment.

Learn more about editing an AP adjustment.

Deleting an AP adjustment with an asset cost adjustment

You can delete an AP adjustment that changes asset cost only if the asset has not had any of the following activities after the adjustment:

  • Transfers

  • Posted depreciation

  • Partial disposals

  • Full disposal

Deleting an AP adjustment with an asset cost adjustment does the following:

  • Reverts the asset cost to its original value.

  • Reverts any Not posted entries to their original values.

  • Removes the adjustment from the asset's Cost adjustments tab.

Learn more about deleting an AP debit memo or deleting an AP credit memo adjustment.

Reversing an AP adjustment with an asset cost adjustment

Reversing an AP adjustment creates a new adjustment that offsets the original. This new adjustment is added to the asset's Cost adjustment tab and is treated like any other adjustment that updates asset cost.

Learn more about reversing an AP debit memo or reversing an AP credit memo adjustment.

Other AP adjustment actions

The following actions do not affect the adjusted asset’s cost:

  • Processing payment
  • Applying or unapplying credit
  • Reclassifying
  • Canceling payment request