Accounting entries for for cost adjustments

Summary:

Incorrect accounting entries for cost and periodic depreciation for cost adjustments.

Content (please ensure you mask any confidential information):

One of the segments in our chart of accounts is Award. Our SLA rules derive the Award segment from the depreciation expense account in the Assignments section of the Edit Source Lines screen for both asset cost and periodic depreciation entries.

When an asset is initially capitalized, it is assigned a depreciation expense account, with a particular Award value (say, 100). Subsequently, when cost adjustments are made to the asset, it is possible to assign depreciation expense accounts, with different Award values (say 200), to these assets. However, when creating the accounting for these cost adjustments, both the asset cost and periodic depreciation entries continue to hit the Award value originally used at the time of capitalization (i.e., 100).