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Accumulation of Depreciation does not match with Asset's Profit Center History

zidnaqoulan
Explorer
0 Kudos

Hi Experts,

I have a case like these:

  1. I have an asset on Cost Center A (Assigned to Profit Center A) which worth of USD 12.000 and acquired on 01.01.2023 (useful life 10 years)
  2. I run the depreciation for period 01.2023 & 02.2023 (worth of USD 200), so that the journal for Accumulated Depreciation & Depreciation Expense is posted on Profit Center A
  3. On 01.03.2023, I change the asset into Cost Center B (Assigned to Profit Center B) using Time Interval in AS02
  4. I run depreciation for period 03.2023 (worth of USD 100) so that the journal for Accumulated Depreciation & Depreciation Expense is posted on Profit Center B
  5. On 01.04.2023, I transfer the asset into new asset in cost center C (Assigned to profit center C) using ABUMN

However, the journal posted for the 5th step is

  • (Credit) APC Old Asset 12.000 Profit Center B
  • (Debit) Accumulated Depreciation 300 Profit Center B
  • (Debit) APC New Asset 12.000 Profit Profit Center C
  • (Credit) Accumulated Depreciation 300 Profit Center C


Here, I am confused, why all the accumulated depreciation is debited from Profit Center B?

Since I run the step no 2nd, there are accumulated depreciation on Profit Center A which already posted and it remains on the balance sheet all over period. Moreover, the APC value of the asset is posted on Profit Center A, it will be brings inconsistencies in the profit center report.

Can I make the following journal when transferring into new asset so that the balance sheet for Profit Center A is disappear?

  • (Credit) APC Old Asset 12.000 Profit Center A
  • (Debit) Accumulated Depreciation 200 Profit Center A
  • (Debit) Accumulated Depreciation 100 Profit Center B
  • (Debit) APC New Asset 12.000 Profit Profit Center C
  • (Credit) Accumulated Depreciation Profit Center C

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