Stop Depreciation for 2020 year
Hi all,
I need a consultancy on fixed assets. We are on ERP Financial Cloud
Now there is a decree in Italy that allows to stop depreciation for the year 2020 for the pandemic situation, my client would do it.
At the system level in Assets module all depreciation has been executed in 2020 year, so I should do
1) an unplanned depreciation with negative amount to reverse the entire 2020 amortization reserve YTD
2) then extend the life of the asset by 1 year
My concerns:
1) we can do without problems
2) it has impacts because the asset would change the Period To Date deprecaition, for example, if cost = 1200 eur over 12 months, so PTD = 100 eur, but if I change it in = 24 months, the PTD amortization is lowered to 50, instead my client would like it to continue with 100. This is applicable if I amortize the adjustment (and the asset go to NBV amortization method) or if I don't amortize the adjustment. Example if I amortize the adjustment (and the asset go to NBV amortization method), the PTD will change anyway, because it pass