How to Amend the financial details of an asset
An asset has been activated, yet the financial details weren't correct... no worries, Amend! :)
When amending an asset, the asset will take into account the amended financial details and treat the asset as though it has just been activated from being a Draft asset.
The financial details that can be amended for both Accounting and Tax schedules include:
- Purchase Price
- Purchase Date
- Asset Type
- Current Value
- Current Value Date
- Depreciation Type
- Depreciation Term/Rate
- Depreciation Start Date
Journal treatments with Amend
- By default, when amending, a journal will be posted in order to reverse any journaled accounting depreciation, revaluation surpluses or impairments.
- There is the option to not have this journal posted if the journals have already been accounted for.
- Because the amended asset is treated as being reactivated, if you would like to have a journal created for depreciation up to to the last closed month, use the "Out of Cycle Journal Post". Otherwise, no sweat 😅, Asset.Guru will automatically create a depreciation journal, as per usual at the end of the current month.
Amend is not an asset Revalue
- When Amending an asset, it is treated as being a newly re-activated asset, removing any prior depreciation schedules and replacing them with the newly amended schedules.
Key differences between Amend and Revalue
- A Revalue keeps the depreciation schedules and asset values that are prior to the Revalue Date.
- A Revalue changes the accounting and/or tax treatment DURING the assets depreciation lifecycle.
- An Amend resets the depreciation schedules as if the prior depreciation had never occurred.
- A Revalue doesn't reactivate an asset like Amend does, instead it continues the assets life and depreciation based on the Revalue Amount, Schedule and Date. Here is an article for more details on How to Revalue and Asset.
Steps to Amend and asset:
- Click into the asset you would like to amend from the asset register
- Select Amend in the Focus View (as pictured)
- Enter the the correct financial details as needed
- The check box to post an amend journal is by default selected. This will reverse any accounting depreciation, revaluation surpluses or impairments. Please uncheck the box if you have already made appropriate journal entries to account for the amend and do not wish for Asset.Guru to automatically post anything.
- And click Next (this will only activate after any of the fields have been changed from their original values)
- The following image is when Post a journal is ticked providing a confirmation screen
- If linked to an accounting package, the option to choose a different Depreciation account is provided.
- If the asset doesn't have any posted journals, then no reversal journal will be created.
- Click Confirm.
Nice! Amend complete.