Post recovery adjustment

Asset was adjusted for some information in the book information section and rendered asset under depreciation with no life left to use to fully depreciate the asset.

The Adjustment option (Located at: File, Edit Company, Book Overrides tab and the Adjustment row) is to be selected at the time a company is created and not afterward. Altering the adjustments afterward may have dramatic results to the calculations in the assets with no sure way to go back to the prior numbers unless a backup of the company exist from prior to changing the adjustments.

Some of the effect of applying the Postrecovery adjustment to an existing company are:

1. This is a global change in a company, therefore all under-depreciated assets will corrected not just a certain group.
2. To find all under-depreciated asset, run the Depreciation Adjustment Report (Reports, Standard Reports, Depreciation Adjustment) which will list all under-depreciated in a company. The Postrecovery adjustment will correct only under-depreciated assets.
3. Postrecovery adjustment: The application takes the adjustment amount in the first period in the next fiscal year after the end of the asset’s life, then asset is then fully depreciated. On the Depreciation Expense report for the postrecovery period, the Year-to-Date columns reflect the adjustment amount, and the Key Code column displays an “a” for adjustment.
   
   For Example: In a calendar year company, an asset’s life ends is on 6/30/2020, at which point it stops depreciating leaving any under-depreciated amount in the net book value. Once depreciation is ran for 1/31/2021 then the application takes the adjustment amount and fully depreciates the asset.
4. Removing the Postrecovery Adjustments and rerunning depreciation does not always properly eliminate the adjustments it performed.
5. The prior accumulated depreciation will not tie after selecting postrecovery after running depreciation and there is nothing that can be done to correct this.