Enter the adjustment type for the posted asset. Run Fixed Asset Transaction Post to create the adjustment transactions. An audit trail is maintained showing a history of the depreciation activity.

Fixed Assets supplies the following adjustment types:

Basis: Adjust Basis. Lets you change the cost of the asset after depreciation has been posted. The system uses the new basis to recalculate the depreciation schedule for the life of the asset. Then the difference between the old depreciation schedule and the new depreciation schedule is calculated. Any adjustments to posted periods are posted in the first open period. The new basis must be greater than the posted depreciation and cannot be negative.

Bonus: Bonus Adjustment. Lets you record additional depreciation for an asset. For example, bonus depreciation is used to indicate that an asset has become obsolete. Bonus adjustments are not allowed in posted, suspended, or final periods of the depreciation schedule. The bonus amount must not exceed the remaining total of the depreciation schedule.

Life: Adjust Life. Lets you change the estimated life of an asset after depreciation has been posted. The system calculates the difference between the old depreciation schedule and the new depreciation schedule. The new depreciation schedule begins in the first open period.

Method: Adjust Method. Lets you change the depreciation method after depreciation has been posted. The system calculates the difference between the old depreciation schedule and the new depreciation schedule. The new depreciation schedule begins in the first open period.

Reinstate: Reinstate Depreciation. Lets you reinstate the asset into service. The reinstate date must be after the suspension date.

Suspend: Suspend Depreciation. Lets you suspend the asset from service. Suspensions are not allowed if the asset is already suspended or the starting period is posted.

Salvage: Adjust Salvage. Lets you change the salvage value. Often, when a fixed asset’s basis is adjusted, the salvage must also be adjusted. If you adjust the salvage value, the system uses the basis minus the salvage adjustment as the new basis to recalculate the depreciation schedule for the life of the asset.

You can only adjust the salvage value if the depreciation method allows the use of salvage. To enable salvage, the Use Salvage field must be selected for the method in Method Maintenance (32.1.1). See Setting Up Methods.

If you are adjusting the method, enter a depreciation method ID. Set up methods in Method Maintenance. The ID is a four‑character alphanumeric ID and cannot start with a zero. See Setting Up Methods.

If you are adjusting the life, enter the new expected useful life for the asset. The expected life is used in calculating depreciation over the life of the asset.

For Bonus Depreciation, enter the bonus amount. Bonus adjustments are not allowed in posted, suspended, or final periods of the depreciation schedule. The bonus amount must not exceed the remaining total of the depreciation schedule.

For Adjust Basis, enter the new asset basis. The new basis must be greater than the posted depreciation and cannot be negative.

For Adjust Salvage, enter the new salvage value. The salvage adjustment cannot be a negative value. You cannot adjust the salvage to be larger than the net book value of the asset.

Displays the currency of the fixed asset book as defined in Book Maintenance. This field is read only.

Enter the year and the period for this adjustment. The format is YYYYXX, where YYYY is the year and XX is the period.

SL: Service Life. Calculate the difference between the old depreciation schedule and the new depreciation and post the adjustments to posted periods in the first open period.

RL: Remaining Life. Calculate the difference between the old depreciation schedule and the new depreciation and spread the adjustments to posted periods over the remaining periods.

The system prompts you to enter this field when the recalculation of the depreciation of the fixed asset is performed for the first time and the adjustment type is Basis, Life, or Method.

Once chosen, the method is normally the same for later recalculations of the same asset, but you are not excluded from changing the life.

The following example illustrates the effect of this setting.