Adjustments in Fixed Assets

Cost adjustment of a fixed asset

In this short article, I would quickly tell you the 2 types of adjustments in fixed asset module

1. Expense Adjustment - Prospective

2. Amortized Adjustment - Retrospective

Expense Adjustment - In simple words it is that adjustment which calculates the depreciation on the latest cost adjustment done by dividing it with the life of the asset.

Amortized Adjustment - In simple words it is that adjustment which calculates the depreciation by subtracting the depreciation till date from the new cost adjustment done.

Pre-requisites - Run the depreciation and close the period.