| # Reverse depreciation ERP Enterprise posts all the journal entries of fixed asset depreciation transactions to General Ledger module for the posting-book defined in the FAM Parameter (tffam0100s000) session. The book must be a financial book or a commercial book. In addition to the posting book, you can also post the depreciation transactions for additional or non-posting books defined in the FAM Parameter (tffam0100s000) session to General Ledger module. If you select the Depreciation Postings to General Ledger check box in the Asset Book (tffam1110s000) session, you can post the depreciation transactions for additional books to General Ledger module. If the asset is disposed, the accumulated depreciation postings to General Ledger module are reversed for the posting book. In addition, to these reverse entries, ERP Enterprise generates the journal entry for reversal of accumulated depreciation amount for the additional posting books. Example The value of an asset $12000. Asset's life is 1 year. The following journal entries are defaulted when you clear the Depreciation Postings to General Ledger check box in Asset Book (tffam1110s000) session. ERP Enterprise generates the following journal entries for the additional posting book.
Transaction | Type | Ledger Account | Amount
--- | --- | --- | ---
Asset Capitalization | Debit | Asset account (from IDT FAM_ASSE) | 12000
Credit | Capital Accumulation account (from IDT FAM_CAPA) | 12000
Asset Depreciation for Period 1 | Debit | Depreciation Expense account (from IDT FAM_DEPR) | 1000
Credit | Accumulated Depreciation account (from IDT FAM_ACCU) | 1000
Asset Depreciation for Period 2 | Debit | Depreciation Expense account (from IDT FAM_DEPR) | 1000
Credit | Accumulated Depreciation account (from IDT FAM_ACCU) | 1000
Asset Disposal after period 2 for 9000 | Credit | Asset account (from IDT FAM_ASSE) | 12000
Debit | Accumulated Depreciation account (from IDT FAM_ACCU) | 2000
Debit | Asset Sales proceed account (from FAM_PROC) | 9000
Debit | Loss account (from FAM_LOSS) | 1000
The following journal entries are defaulted when you select the Depreciation Postings to General Ledger check box in Asset Book (tffam1110s000) session. ERP Enterprise generates the following journal entries for the additional posting book.
Transaction | Type | Ledger Account | Amount
--- | --- | --- | ---
Asset Capitalization | Debit | Asset account (from IDT FAM_ASSE) | 12000
Credit | Capital Accumulation account (from IDT FAM_CAPA) | 12000
Asset Depreciation for Period 1 | Debit | Depreciation Expense account (from IDT FAM_DEPR) | 1000
Credit | Accumulated Depreciation account (from IDT FAM_ACCU) | 1000
Debit | Debit account for Calculatory Depreciation account (from IDT FAM_CALC) | 1000
Credit | Credit account for Calculatory Depreciation account (from IDT FAM_CALC) | 1000
Asset Depreciation for Period 2 | Debit | Depreciation Expense account (from IDT FAM_DEPR) | 1000
Credit | Accumulated Depreciation account (from IDT FAM_ACCU) | 1000
Debit | Debit account for Calculatory Depreciation account (from IDT FAM_CALC) | 1000
Credit | Credit account for Calculatory Depreciation account(from IDT FAM_CALC) | 1000
Asset Disposal after period 2 for 9000 | Credit | Asset account (from IDT FAM_ASSE) | 12000
Debit | Accumulated Depreciation account (from IDT FAM_ACCU) | 2000
Debit | Asset Sales proceed account(from FAM_PROC) | 9000
Debit | Loss account (from FAM_LOSS) | 1000
Debit | Debit account (from IDT FAM_ADDL) | 2000
Credit | Credit account from IDT FAM_ADDL | 2000
Related topics Disposing Assets |