This utility can be used to reverse all 'Straight Line
Depreciation' and 'Declining Balance' standard transactions
calculated and posted for rental inventory in Depreciation.
This action does not apply to the Alternate Depreciation records
and they are not reversed.
Resulting reversing Straight Line and Declining Balance Depreciation records are added to the Fixed Asset Tags for eligible Bulk and Non-Bulk products in the Rental Inventory as of the original depreciated date.
If the feature to Post Depreciation to G/L is activated
in the Company Posting Parameters, and the
posting accounts for Accumulated Depreciation and for the
Depreciation Expense are setup in the "Depreciation Accounts"
windows of Depreciation Classes, reversing
G/L posting transactions are also written to the General Ledger for
Non-Bulk equipment as of the selected Post Date for Depreciation
Reversal.
A posting journal is generated following the "Non-Bulk Depreciation
Changes Report" summarizing the accounts, divisions, and amounts
that will be posted.
No G/L reversing transactions are generated for the Bulk rental
products, even though the depreciation is reversed on the Fixed
Asset Tags in the sub-ledger. Manual adjustments will be required
in the G/L to complete Bulk product reversals.
Note: Depreciation Methods other than Straight Line and Declining Balance are not reversed and the products within the date range are listed on the "Excluded Report".
The following criteria must apply for a Tag to be selected for Depreciation reversal:
Asset Tag must have Depreciation History records dated on or after the selected cut-off date.
Asset Tag must have a Quantity (original
quantity - quantity sold - quantity transferred = greater than
zero).
This means depreciation for disposed inventory with zero quantity
will not be reversed.
Depreciation Class currently on the Tag uses method S (Straight Line) or D (Declining Balance).
Accumulated Depreciation dollar amount on Asset Tag must be greater than zero.
Depreciation Class assigned on the Tag, must have valid GL Accounts defined in Depreciation Classes if the feature to Post Depreciation to G/L is activated in the Company Posting Parameters.
The prompts include:
When reversing depreciation amounts are posted to the G/L for
Non-Bulk Rentals, this becomes the date of the reversing
depreciation transactions in the G/L.
However the reversing date on the 'Asset Tags' in the inventory
sub-ledger is always the date of the original depreciation
record.
Note: A warning note is displayed on the screen if any asset has been changed to/from the Straight Line method to/from Declining Balance depreciation method in their lifetime.
b) If the feature to Post Depreciation to G/L is
activated in the Company Posting Parameters,
a posting journal is generated following the "Non-Bulk Depreciation
Changes Report" summarizing the accounts, divisions, and amounts
that will be posted to the G/L for reversing the depreciation.
This posting information is included on a second tab when the
output is exported to a spreadsheet.
Bulk Rental Product Depreciation Changes:
Each non-bulk product number to be reversed is listed with the
description, Asset Tag number, Depreciation Class, Book Value,
Current Depreciation, (Division is blank for bulk products),
Depreciation Date, Reversed Amount, and new Book Value.
Items Excluded from Depreciation Reversal:
Product numbers that are not eligible for reversal are listed with
the description, Asset Tag number, Tag Status, Quantity, Book
Value, Current Depreciation, and reason for the exclusion.
Products and Tags on this excluded report or spreadsheet are those
that have quantity and have depreciation history but did not meet
the other criteria listed above to be eligible for reversal on the
bulk or non-bulk reports. This includes products that use other
depreciation methods.
Depreciation reversal will also fail if the product does not have
valid posting accounts defined in the Depreciation Classes when Post Depreciation to
G/L is activated in the Company Posting
Parameters.
After reviewing the report or spreadsheet output, click ACCEPT to post the changes to the Asset Tags in the inventory sub-ledger and to post the reversing transactions to the G/L, or click CANCEL to abort postings.
Note: If the depreciation method on a tag had been changed from/to Straight Line/Declining Balance, to avoid subsequent depreciation calculations from being distorted, the YTD number of depreciations and the YTD dollars will be set to zero on the date that the method was changed.
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