Adjusting individual assets

When you adjust asset information one asset at a time, you can add or change any asset information, except for the asset number or the company.

Note: To move an asset from one company to another, you must transfer the asset.

Transferring assets

Procedure flow: Adjusting individual assets

Adjust assets

  1. Access Additions and Adjustments (AM20.2).
  2. Add or change asset information.
    1. Specify the asset information using these guidelines:
      Asset number

      Assigned by Asset Management application and cannot be changed.

      Detail information

      Add or change the detail information.

      Category Option tab

      Use this tab to change asset category information. For example, you can change a simulated asset to a real asset by changing the simulated field from Y to N.

    2. Specify the adjustment date.

      The adjustment you are making affects the asset as of the current, open period, not as of the adjustment date you specify. The adjustment date only determines where the adjustment appears on the Adjustments Report (AM225) which displays adjustments in date sequence. You can specify any date equal to or later than the asset's purchase date as the adjustment date.

  3. Add or change asset item information. If you change the Item Cost or Item Purchase Date fields, you should also change the Basis and In-service Date on Books (AM20.4).
  4. Add or change asset book information using AM20.4. Specify this information:
    Basis, Method, Remaining Life, In-Service Date, Convention, LTD, YTD

    Changing any of the these fields will affect depreciation. Use the Compute option to define how these adjustments should be processed for General Ledger journal entries.

    Compute Option

    Determines the way adjustments affect depreciation over the remaining periods. The three Compute options are:

    N - No calculation is made at the time of the adjustment. No journal entry is created to correct current depreciation figures. The effect of the adjustment on depreciation is spread evenly over all the remaining periods of the current year. Next year's depreciation is then based on the asset's features as adjusted.

    Y - A calculation is made to reflect the adjustment and to assign all of the effect of the adjustment to the current period. An adjusting journal entry to the Depreciation Expense and Accumulated Depreciation accounts is created.

    P - No calculation is made at the time of the adjustment. No journal entry is created.The effect of the adjustment on depreciation is spread evenly over all the periods of the asset's remaining life.

    Note: The Compute Option at the top of the form is valid for all books changed. To select an option that is valid for individual books, use the Compute Option field found on the Depreciation tab at the bottom of the form.

    You might be prompted to verify journal entries for the asset if you change an asset with a posting book. The program automatically navigates to Journal Entries (AM20.5).

  5. Accept, change, or delete system-prompted journal entries related to the asset change.

    If the Display Journal Entries system option is set to No on System Options (AM16.1), journal entries are added without being displayed. You can still open Journal Entries (AM20.5) to see what journal entries were added and to modify them at any time before you release the asset.

    1. Change any data in the journal entry, if necessary.
    2. To accept a journal entry, click the Add button. The adjustment is added.

      or

      To delete the journal entry, close the form without using the Add button. The adjustment is added, but the journal entry is not recorded.

  6. Verify the accuracy of adjustments by running the Adjustment Report (AM225) with an N in the Release field to produce a report of adjustment records to be verified.
  7. Change or reset the adjustments if any information is incorrect, using AM20.2, AM20.3, or AM20.4.
    Note: You can undo an adjustment only while it is in process. If it has been released, you must make any additional changes by repeating the adjustment procedure from the beginning.
  8. Release the adjustments.
    Release Method Options
    Batch Run Processing Release (AM170). This will also transfer journal entries to General Ledger.
    Online Use the Release form action on AM20.2, AM20.3, or AM20.4
    Note: This procedure transfers journal entries to the General Ledger which are posted as part of the General Ledger process cycle.
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