Capitalized an asset too early

Hi.  Last month I've capitalized an asset, but just found out it should not have been capitalized until a later month with additional cost.  All I need to do in the general ledger is to back out my journal entries from last month by putting the asset back into WIP and zeroing out 1 month of depreciation expense.  How would I handle this in FAS Premier Depreciation ver 2021.1?  This asset will be move back into WIP and later capitalize at a higher cost.

Thanks,

Eric    

  • Hello Eric,

    The first thought that comes to mind would be to change the Placed-in Service date to be the month you want the asset to start taking depreciation and answer Yes-Placed-in-Service date to the questions which will have the affect you are looking for.

    ~Delray

  • What I ended up doing was applied the Inactive feature, so the asset will not show up on the current depreciation reports as if it was never capitalized.  This way FAS depreciation reports will be in balance with the general ledger, since I've backed out the capitalized and depreciation journal entries.  Then when it comes time to actually capitalize this asset in the correct future month, I would just need to reactive the asset and change the acquisition price and place in service date.