12 Make Corrections to Fixed Asset Balances

This chapter contains these topics:

• Section 12.1, "Correcting General Ledger Balances,"

• Section 12.2, "Correcting Fixed Asset Balances,"

• Section 12.3, "Correcting Depreciation Entries."

Any corrections that you make to journal entries that are created by the Fixed Assets system to update the Item Balances (F1202) table must be posted to the general ledger. For example, if you make an error when you split an asset, and create out of balance journal entries, you must make the appropriate adjusting journal entries, and post them to the general ledger.

See Also:

• Section 45.1, "Running Integrity Reports" for more information about out of balance records in the general ledger or fixed assets,

• Chapter 10, "Work with G/L Journal Entries" for more information about creating journal entries.

12.1 Correcting General Ledger Balances

If the balance in the Item Balances table for fixed assets is correct, but the balance in the general ledger is incorrect, you must create a journal entry to update the general ledger.

To correct general ledger balances

Navigation

From Fixed Assets (G12), choose Posting T/L to Fixed Assets

From Fixed Assets (G1212), choose Revised Unposted Journal Entries

Figure 12-1 Revise Unposted Entries screen

Description of "Figure 12-1 Revise Unposted Entries screen"

On Revise Unposted Entries

1. To keep the transaction from posting to Fixed Assets, enter P (Pass) in the following field:

   • F/A Pass Code

2. Complete the remaining fields, as needed, to create a journal entry to correct the G/L balance.

12.2 Correcting Fixed Asset Balances

If the balance in the general ledger is correct, but the balance in the fixed asset Item Balances table is not, you must post an adjusting journal entry to both the general ledger and fixed assets. Then, you must void the entry in the general ledger and then pass on the voided entry in fixed assets.

To correct the Fixed Asset balance, enter a journal entry.

1. Post the adjusting journal entry to the general ledger.

2. Post the adjusting journal entry to the Fixed Assets system.

3. To return the general ledger to the correct balance, void the original general ledger entry.

4. To pass the transaction and keep the adjusting journal entry from posting to Fixed Assets again, on Revise Unposted Entries, complete the following field:

   • F/A Pass Code

12.3 Correcting Depreciation Entries

The programs that compute depreciation in the Fixed Assets system are self-correcting. If you enter an adjusting journal entry to correct a depreciation error, the journal entry might correct the depreciation in the current period, but the error will re-occur when you run the programs to calculate depreciation in the next period.

You can use journal entries to correct depreciation errors only when the Method of Computation is P or C. If you use Method of Computation P, the system calculates depreciation only for the current period. If you use Method of Computation C, the system allows journal entry corrections at the end of the fiscal year, after depreciation has been calculated.

To correct errors for final depreciation that has been posted to the general ledger, you must void the depreciation post to the general ledger and then post the void to Fixed Assets. See the note below for summarized depreciation journal entries.

To correct final depreciation that has not been posted to the general ledger, you must post the final depreciation to the general ledger, void the general ledger entry, and then post the void back to fixed assets. See the note below for summarized depreciation journal entries.

Caution:

Do NOT void summarized journal entries. If you need to make corrections to summarized journal entries, you must enter a detailed journal entry and post the entry to the G/L and fixed assets. You can also use a STAR report to reverse these amounts, or, you can use backup information to restore the fixed asset balance records that were on the system before the depreciation computation.