Inception-to-Date

When you select the Inception-to-Date calculation method, account balances for every year are revalued. For example, year-to-date activity in the asset cost account is revalued for each year; and the adjustment amount is calculated for each year. The adjustment amounts are then summed and a journal entry is created for that amount to post to the ledger that is specified in the processing options. The offsetting entry is created for posting to the cost offset account that you set up in the FR AAIs. Both primary and secondary accumulated depreciation are treated similarly, except for the offsets.

If you need to track both current adjustments and prior year adjustments, you must set up offset accounts for both the FR2 (current year accumulated depreciation) and FR3 (prior year accumulated depreciation) AAIs. Offsetting journal entries are created automatically for these two offset accounts.