Kevin notes that a company car was already capitalized under the wrong asset class in the previous year. Kevin has made a transfer posting to an asset with the correct asset class (‘vehicles’). However, what about the depreciation value in the previous year? The previous year is closed and cannot be changed.
Kevin has a problem with assets that were mistakenly depreciated too much in previous years. For example, a company car was entered with the wrong asset class. As a result, depreciation was calculated with a useful life that was too low. He has transferred the car to the ‘vehicles’ asset class and is now asking Lisette for her recommendations.
She tells him, that to correct the value adjustment, Kevin can post a write-up in the current fiscal year using the Post Writeup app for the over-posted depreciation of the previous year. It is important to note that the valuation date is at the earliest 01/01/CY. The transaction type group is then 7XX.
But in which cases is a correction possible with a write-up?
If depreciation was too high in the past, correct this depreciation with a write-up in the current fiscal year.
Possible reasons for excessive depreciation might be:
- The use of incorrect depreciation terms such as ‘incorrect expected useful life’ and ‘incorrect depreciation key’
- Unplanned depreciation, which is no longer valid in the current situation
- A later reduction in the acquisition and production costs of an asset for example, due to a subsequent credit memo.
The write-ups can be posted to:
- Ordinary depreciation
- Special depreciation
- Unplanned depreciation
- Manual depreciation
Note
A write-up always refers to the value adjustment (depreciation).
Let’s have a look at how the post-write-up looks like in the system.