Change asset cost using an AP adjustment

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.

Before you begin

  • Verify that the asset is in the Ready for review or In service state.

  • Note the asset's Asset GL account so you can use it for the adjustment.

Change asset cost using an AP adjustment

Subscription

Fixed Assets Management

Accounts Payable

Regional availability

All regions

User type

Business
Permissions

Accounts Payable

  • Adjustments: List, View, Add, Post

Fixed Assets Management

  • Asset: List, View, Edit

  1. Go to Accounts Payable > All > Payments and select Add (circle) next to Adjustments.

  2. Enter the header fields.

    1. Select a Date.

      The date must meet the following requirements:

      • Be after the asset's acquisition date.

      • Be after the asset's in-service date.

      • Be after the asset's last posted depreciation date.

      • Be before the asset's next scheduled depreciation date.

      • Be after the asset's last transfer date.

      • Be after the asset's last partial disposal date.

    2. Select a Type.

      A Debit memo decreases asset cost, and a Credit memo increases it.

    3. For multi-currency companies, select a Base currency that matches the asset's base currency.

  3. Enter the line items.

    1. Select an Account.

      The account must be assigned as the Asset account on the asset that you want to adjust.

    2. Enter the Amount.

      • For multi-currency companies, enter the Transaction amount. The Base amount indicates how much the asset's cost will change.

      • Negative signs are ignored. The adjustment type determines the sign.

      The amount (or base amount) must meet the following requirements:

      • For debit memo adjustments, be less than the asset's depreciable cost.

      • For debit memo adjustments, be less than the lowest remaining depreciation across the asset’s depreciation schedules.

    3. Select Show details to reveal more fields for the line.

    4. In the Fixed Assets Management section, select the Asset to adjust.

      Assets appear in this dropdown only when the selected account is an Asset GL account.

    5. Leave the Asset dimension field blank.

      This field is populated automatically with the adjusted asset after posting.

    6. Add additional lines as needed.

  4. Enter any remaining required fields.

    For more information about the fields, see AP adjustments field descriptions.

  5. Select Post.