Overview

After fixed assets are recognized in the asset accounting, events such as modernization, overhaul, rebuilding, technological obsolescence, and other may lead to changes in the accounting parameters for depreciation. In this case, changes may also be required in the depreciation method, useful life, accelerated depreciation rate, replacement cost, and other.

If changes are made to the operating business unit, to the line of business where the fixed asset operates, and so on, it may be necessary to change cost items and cost centers.

Change asset accounting parameters flowchart

Paths

How to select assets

1. Go to Assets management and then click Fixed assets documents under Fixed assets.

2. Click Create and select the Adjust fixed asset financial details transaction.

3. Click the Main tab.

4. Select a Company.

5. Select an Event related to the change in the accounting parameters. If necessary, create a new event.

6. Click the Fixed assets tab.

7. Click Pick and choose an asset or a group of assets for which new financial parameters will be applied.

How to stop depreciation charge

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Depreciation charge check box and choose the Stopped value.

How to change the depreciation charge method

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Depreciation method check box and choose another method.

How to change useful life

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Useful life check box and specify a new value in months.

How to change the depreciation acceleration factor

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Acceleration factor check box and specify a new value.

How to change the residual value

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Residual value check box(es) and specify a new value for each accounting currency.

How to change a UoM and an asset activity value 

1. In the Adjust fixed asset financial details document, click the Accounting parameters tab.

2. Select the Asset activity measure check box and specify a new option.

3. Select the Estimated asset activity value check box and specify a new value.

How to maintain allocation rules for depreciation charge

1. In the Adjust fixed asset financial details document, click the Add depreciation to expenses tab.

2. Select the Change how to recognize depreciation in expenses check box to set up custom allocation rules.

3. Add a line and specify:

• Business unit (as a cost center)
• Line of business
• Expense item
• Expense dimension

4. Specify an allocation Factor for each line.