Finance | Project Operations, Human Resources, ...

How to reverse free text invoice with fixed asset sales

(0) Share

Report

Posted on by Anthikala

Hello,

One of our users has posted free text invoice to sell a wrong fixed asset that had a remaining net book value. This free text invoice contains more than 100 fixed assets.

We have tried to correct the fixed asset balance by posting a credit note. However, the expected net book value has been posted to the profit/loss field after posting the credit note.

My requirement is, the same amount shown in the profit/loss field should be shown in the 'Net book' value field. Can anyone help me to fix this issue?

Note:

There is no function in our system to cancel the free text invoice, using the tab 'Invoice' in the free text invoice window.
We tried to reverse the fixed asset transactions and it was also not allowed by the system.
We tried to reverse the free text invoice from the customer transactions list. as this free text invoice was used to sell around 100 fixed assets, the system does not allow to reverse the free text invoice from the customer transaction menu.

Categories:

Other

Financial Management

I have the same question (0)

All responses (11)

Answers (0)

Anthikala 80 on at

Like (1)

Report

RE: How to reverse free text invoice with fixed asset sales

Dear Andre and Saurabh,

Thank you for supporting me with different options.

My requirement was to show the fixed asset balances the same as the ones before it was sold.

As we realized that we cannot do it, we discussed with the user and decided to create a new fixed asset for them, after reversing the sales and the profit/loss balance of the original fixed asset.

We already tested this in the test environment and the user can continue with the depreciation for the remaining period as usual from next month.

Thank you.

Was this reply helpful? Yes No
Suggested answer

saurabh bharti 14,918 Moderator on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

This will show in adjustment if you used transaction type as acquisition adjustment. Also, keep in mind that this is adjustment we are trying so it can't be in same state as it was in originally.

Was this reply helpful? Yes No
André Arnaud de Cal... 283,862 Test role Public on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Hi Anthikala,

Can you share the balances you had before the adjustments and after? What should be the correct value? What exact journal entry did you do to make your corrections?

Was this reply helpful? Yes No
Anthikala 80 on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Hello everyone,

I am sorry for checking this matter again with you all.

Does anyone know the solution to this problem?

I would be grateful if I can have some other guide as well to check this. (Since I have tested almost all the possible options)

Thank you

Was this reply helpful? Yes No
Anthikala 80 on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Dear Saurabh,

Thank you very much for the detailed steps.

I have tried all the steps in the test environment and posted the general journal.

However, after posting the general journal, the acquisition price of the fixed asset is showing as including the adjusted amount.

Was this reply helpful? Yes No
Suggested answer

saurabh bharti 14,918 Moderator on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Yes that what we tried explaining , so current state is that Net book value is sitting under asset sale account right? or which ever account , you just need to identify that account first .

Now, Go and and change the state of Fixed asset book, it will be sold or closed due to free text invoice.

Now that asset is open with net book value Zero.

Now pass a general journal ,

Account type = Fixed asset , select fixed asset number

Debit = Value which is sitting in identified Main account and should be equal to Net book value

Offset account type = Ledger

Offset account = Main account which is identified and holding net book value after free text invoice

Go to fixed asset tab , select transaction type (It can acq adjustment) and book

Now validate and post

It will post that value to asset and reverse from that account.

Was this reply helpful? Yes No
Anthikala 80 on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Sorry for the confusion

I will explain the current situation on this issue.

The user has sold one of the building's fixed assets instead of furniture.

Now, we want to reverse this sales amount and show the netbook value correctly for this building's fixed asset. (we cannot use the reversal function, because this free text invoice include more than 100 lines)

However, when we use the free text invoice credit note to reverse this amount in the test environment, it did not reverse the acquisition and the accumulative depreciation prices of the fixed asset properly. Because of this reason, the netbook value is still shown as 0.

Current balances of the FA

FA Transactions

Could you let me know how can I reverse the sales amount to show the correct netbook value for this fixed amount

Was this reply helpful? Yes No
Suggested answer

saurabh bharti 14,918 Moderator on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

As suggested ,

1. First change the status of the book attached to asset

2. Move the amount from profit/loss account which was posted through credit note using General journal where one side you can select account type as fixed asset and select required asset number

Note: In my opinion, there is no way to put back Asset using free txt invoice credit or correction.

Was this reply helpful? Yes No
André Arnaud de Cal... 283,862 Test role Public on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Hi Anthikala,

If the asset book has a closed status, you have to set it to an open status to be able to post reversing entries. After you posted the reversing entries, you have to check the values for remaining number of depreciation periods and last depreciation date.

Was this reply helpful? Yes No
Anthikala 80 on at

Like (0)

Report

RE: How to reverse free text invoice with fixed asset sales

Dear Andre,

Thank you for your advice.

could you let me know what kind of settings need to be adjust in fixed asset book?

thank you

Was this reply helpful? Yes No