An FA object can have different acquisition (= capitalized) values due to different capitalization rules in different countries or, due to the different accounting principles within one country (e.g. IFRS and local tax laws). The acquisition value of a fixed assets can be set up per FA book. It consists of the general acquisition value which applies to all books and acquisition value adjustments per book.
Acquisition Value per FA Book = General Acquisition Value +/- Book-specific Adjustments
The acquisition value adjustments are entered in IFS/Fixed Assets. Vouchers are created from IFS/Fixed Assets for the ledgers connected to the respective FA book. Therefore, all vouchers created from adjustment transaction use the voucher type connected to the respective FA Book. The adjusted acquisition values can be used as the base for depreciations and are shown in book specific analysis and reports.
It is also possible to roll back acquisition value adjustments per book.
This process is used to adjust the acquisition value of a fixed asset object for one or several books.
In order to adjust the acquisition value of a fixed asset object for specific books, the object must be Activated and have a general acquisition value which applies to all books. The books for which adjustments are needed must be connected to the fixed assets object even if the object type is Not Depreciable.
Adjustments can increase or decrease for the book-specific acquisition value. It is possible to enter several adjustments with different event dates for the same book. For normal depreciable objects it is not necessary to have depreciations until the event date of the adjustment as, the adjusted acquisition value will automatically be considered in the next depreciation proposal according to the starting principles in the deprecation method. If the object has already depreciations later than the event date of the adjustment the depreciations must be adjusted manually if appropriate.
The Adjustment Type which must be assigned to each adjustment transaction controls the posting of the adjustment and, the presentation in FA Year Report as an Addition or as an Appreciation.
Acquisition value adjustments per book do not update the user-defined base values of the object as user-defined base values are not book-specific.
Vouchers with adjustment postings are created for the general ledger or for a specific internal ledger if, the book in Fixed Assets is connected to an internal ledger with a book-specific voucher type. If the adjustment transactions are entered for a book which does not create accountings, only transactions for Fixed Assets are created without postings.
The posting types used to post book-specific acquisition value adjustments depend on the following factors:
The following table illustrates posting types that will be used to post acquisition value adjustment transactions with different combinations of factors:
Posting Type | Acquisition Value/Counter-posting | Increase/Decrease | Adjustment Type |
FAP39 Acquisition Value Adjustment per Book, Increase | Acquisition Value | Increase | Addition/Appreciation |
FAP41 Acquisition Value Adjustment per Book, Decrease | Acquisition Value | Decrease | Addition/Appreciation |
FAP47 Acquisition Value Adjustment per Book, Increase, Counter Posting Addition | Counter Posting | Increase | Addition |
FAP48 Acquisition Value Adjustment per Book, Decrease, Counter Posting Addition | Counter Posting | Decrease | Addition |
FAP49 Acquisition Value Adjustment per Book, Increase, Counter Posting Appreciation | Counter Posting | Increase | Appreciation |
FAP50 Acquisition Value Adjustment per Book, Decrease, Counter Posting Appreciation | Counter Posting | Decrease | Appreciation |
The account for a book-specific acquisition value adjustment (posting types FAP39, FAP41) can either be the acquisition account of the object, or a book-specific adjustment account if several books with different acquisition values are posted into the same ledger.
Book specific adjustments affect the depreciation base value for the adjusted object and book unless a user-defined base value is specified as calculation base in the depreciation method.
The period from when adjustments are considered in depreciation proposals and depreciation plans depends on the following factors:
If adjustments are entered in IFS/Fixed Assets with an event date for which depreciations are already performed according to the Starting Principle / Add Investment Starting Principle, no automatic recalculation of the depreciations takes place: The user either has to roll back the depreciations or adjust them manually.
It is possible to roll back acquisition value adjustments per book. If the object has more recent transactions, these more recent transactions have to be rolled back before the adjustment transaction can be rolled back.