Post additional acquisition costs
You might have to post additional acquisition costs for a previously acquired fixed asset, such as when you have invested additional funds into the fixed asset.
You can post additional acquisition costs in the same way that you posted the original acquisition cost: from a purchase invoice, the FA G/L journal, or the FA journal.
If you already calculated depreciation for the fixed asset and you want the depreciation period to remain the same, select the Depr. Acquisition Cost check box on the purchase line. This selection guarantees that when you post the line, the program depreciates the acquisition cost less the salvage value in proportion to the amount by which the previously acquired fixed asset is already depreciated. In this case, the depreciation percentage is calculated according to the following formula:
Depreciation percentage = (total depreciation*100) / depreciable basis
The depreciation amount is calculated according to the following formula:
Depreciation amount = (Depreciation percentage/100)*(additional acquisition cost – salvage value)
If you enter a negative acquisition cost (for example if you receive a credit memo), then the calculated depreciation is a positive amount.
You can have the new and the old acquisition costs depreciated up to the current FA Posting Date, if you select the Depr. Until FA Posting Date field.
To have the program automatically calculate depreciation for the period from the FA posting date of the previously acquired fixed asset to the posting date of the additional acquisition cost, select the FA Posting Date check box on the invoice, FA G/L journal, or FA journal lines. Otherwise, only the previously posted acquisition cost will be depreciated.
To automatically calculate depreciation for the period from the FA posting date of the last FA ledger entry of the previously acquired fixed asset to the posting date of the current additional acquisition cost, select the Depr. until FA Posting Date check box on the invoice, FA G/L journal, or FA journal lines. This approach ensures that the total depreciation of the previously acquired fixed asset is correct before the program uses it to calculate the Depr. Acquisition Cost of the new acquisition.