Asset Adjustment Restrictions

There are several restrictions to the type of adjustments you can make:

• You cannot adjust a positive or negative cost for an asset past zero dollars.
• You cannot adjust a positive or negative cost, salvage value, or accumulated depreciation for an asset past zero dollars.
• The net book value that results from adjustments to cost, salvage value, and/or accumulated depreciation cannot go past zero dollars.

Adjustments can have the following effects:

• If you change from a depreciation method that contains an embedded life to a depreciation method that does not, you must also enter a value in the Life (in months) field so that LN can accept the adjustment.
• If you adjust the cost on an asset that depreciates by using modified accelerated cost recovery system (MACRS) table rates, LN will switch to a MACRS formula calculation for all future depreciation.
• If the asset is in a vintage/group account, you cannot adjust the life, method, frequency, or the setting of the Deprec Below Salvage check box in the ADR book or select or clear the New check box. Use the Adjust Vintage/Group Account (tffam7271m000) session to make these changes. Any changes you make to cost, accumulated or year-to-date depreciation, or salvage value will also be changed for the account.
• If you adjust the Current Cost field in the Asset Book Adjustment (tffam1214m000) session, you will effect the results of running the Asset Book Revaluation (tffam3200m000) session.