Understanding Depreciation Inflation Adjustment Accounts

You set up depreciation inflation adjustments accounts by company. In the debit account (monetary correction) and the credit account, enter the accounts to be applied in the depreciation inflation adjustments journal entry. If you use only one book, the debit account is the depreciation inflation adjustment account. If you use two books (subledger for inflation adjustments), the debit account can be the depreciation account or the depreciation inflation adjustment account. In either situation, the debit account is the monetary correction account. The system uses the debit and credit accounts to create the inflation adjustment journal entry.

Note: If you do not set up cost accounts in this application, the system does not generate the journal entry.