Reverse depreciation

LN posts all the journal entries of fixed asset depreciation transactions to General Ledger module for the posting-book defined in the FAM Parameter (tffam0100s000) session. The book must be a financial book or a commercial book.

In addition to the posting book, you can also post the depreciation transactions for additional or non-posting books defined in the FAM Parameter (tffam0100s000) session to General Ledger module. If you select the Depreciation Postings to General Ledger check box in the Asset Books (tffam1510m000) session, you can post the depreciation transactions for additional books to General Ledger module.

If the asset is disposed, the accumulated depreciation postings to General Ledger module are reversed for the posting book. In addition, to these reverse entries, LN generates the journal entry for reversal of accumulated depreciation amount for the additional posting books.

Example

The value of an asset $12000. Asset's life is 1 year. The following journal entries are defaulted when you clear the Depreciation Postings to General Ledger check box in the Asset Books (tffam1510m000) session. LN generates the following journal entries for the additional posting book.

TransactionTypeLedger AccountAmount
Asset CapitalizationDebitAsset account (from IDT FAM_ASSE)12000
CreditCapital Accumulation account (from IDT FAM_CAPA)12000
Asset Depreciation for Period 1DebitDepreciation Expense account (from IDT FAM_DEPR)1000
CreditAccumulated Depreciation account (from IDT FAM_ACCU)1000
Asset Depreciation for Period 2DebitDepreciation Expense account (from IDT FAM_DEPR)1000
CreditAccumulated Depreciation account (from IDT FAM_ACCU)1000
Asset Disposal after period 2 for 9000CreditAsset account (from IDT FAM_ASSE)12000
DebitAccumulated Depreciation account (from IDT FAM_ACCU)2000
DebitAsset Sales proceed account (from FAM_PROC)9000
DebitLoss account (from FAM_LOSS)1000

 

The following journal entries are defaulted when you select the Depreciation Postings to General Ledger check box in the Asset Books (tffam1510m000) session. LN generates the following journal entries for the additional posting book.

TransactionTypeLedger AccountAmount
Asset CapitalizationDebitAsset account (from IDT FAM_ASSE)12000
CreditCapital Accumulation account (from IDT FAM_CAPA)12000
Asset Depreciation for Period 1DebitDepreciation Expense account (from IDT FAM_DEPR)1000
CreditAccumulated Depreciation account (from IDT FAM_ACCU)1000
DebitDebit account for Calculatory Depreciation account (from IDT FAM_CALC)1000
CreditCredit account for Calculatory Depreciation account (from IDT FAM_CALC)1000
Asset Depreciation for Period 2DebitDepreciation Expense account (from IDT FAM_DEPR)1000
CreditAccumulated Depreciation account (from IDT FAM_ACCU)1000
DebitDebit account for Calculatory Depreciation account (from IDT FAM_CALC)1000
CreditCredit account for Calculatory Depreciation account(from IDT FAM_CALC)1000
Asset Disposal after period 2 for 9000CreditAsset account (from IDT FAM_ASSE)12000
DebitAccumulated Depreciation account (from IDT FAM_ACCU)2000
DebitAsset Sales proceed account(from FAM_PROC)9000
DebitLoss account (from FAM_LOSS)1000
DebitDebit account (from IDT FAM_ADDL)2000
CreditCredit account from IDT FAM_ADDL2000

 

Related topics