Clearing Down Fixed Assets
Asset transactions are cleared down by Ledger Cleardown (LCL). Ledger Cleardown (LCL) can also be used to recalculate the depreciation values for an asset, based on the transaction details.
The cleardown process uses the asset indicator on each asset related transaction to determine how to treat each transaction. The asset indicator can be set to Value, Depreciation or Initial. It can recalculate the gross value, net value and depreciation held on the assets, from the asset transactions using the asset indicator.
Recalculating Values
The ledger transactions associated with each asset are optionally used to recalculate the total gross value, depreciation and net value for the assets. If these recalculated values are different to the current asset values, the current values are replaced.
Clearing Transactions
The transactions for an asset are only cleared down when the asset is fully depreciated. Fully depreciated means that the net book value is equal to the final value. In a multi-currency environment, this applies to the net value held in each currency.
Asset Disposal (FAD) removes fully depreciated assets.