Indirect depreciation with value adjustment accounts

With a value adjustment account, it is possible to map the so-called "indirect depreciation".

This method is interesting for fixed assets for which the asset account should always show the original balance, while the changes in book value (impairment losses/reversals) are shown in the value adjustment account.

Creation of value adjustment accounts

As many charts of accounts do not contain value adjustment accounts in the standard system, first create an account. To do this, select the asset account(asset balance sheet account) in the G/L account master and then create a new G/L account as a copy via "Add". The value adjustment account is then entered directly in the correct report items of the work reports.

If the value adjustment account field is not displayed in the asset card, please check your master data under Organization > Master data > Assets > Set up asset accounting.
You must have selected "Version 2017" in the Calculation information: Current version of the depreciation run: area.

Now assign the value adjustment account to the asset in the asset card. All accounts that are taken into account according to the asset accounting master data are offered.

If the "Value adjustment account" field is filled, the (asset) account is replaced by the value adjustment account in all asset accounting postings relevant to expenses and income.