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Depreciation amount different between ledgers

Norbert_Birtala
Advisor
Advisor
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Recently we had the following question:

All the Fixed Assets present small differences between 0L and 2L depreciation. How can I fix it?

Accepted Solutions (1)

Accepted Solutions (1)

Norbert_Birtala
Advisor
Advisor
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In most cases these small differences are coming from rounding settings. IFRS accounting principle (ledger 2L, area 32) does not allow decimal values as depreciation amount. Therefore the system rounds it to integer. However your local GAAP (ledger 0L) may allow decimal amounts in monthly depreciation.

However the overall yearly depreciation amount is the same in both ledgers.

Answers (1)

Answers (1)

Ernesto_Cepeda
Product and Topic Expert
Product and Topic Expert
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Hi Norbert,

I would like to add that with Parallel Accounting it's also possible to have differences in the ledgers. The business reason behind that is that each ledger could have different values due to differences in local and global accounting principles.

I'm showing here the screenshots of the same asset with a value of 12,000 USD in Ledger 0L and 10,000 USD in Ledger 2L:

Ernesto Cepeda

trangntd
Explorer
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Hi Ernesto,

Is there any way to clear the difference forever besides manual adjustment? Thanks

Mark_W
Product and Topic Expert
Product and Topic Expert
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Hi Trang Nguyen Thi Doan,

There is no way to align the values with automatic calculation, there can be differences between ledger configuration and between depreciation keys available on each ledger (even if they have the same name this is no guarantee of the same settings and the changing of depreciation key configuration or the addition of new depreciation keys via a support incident is not allowed).

I would question why you would maintain two ledgers with the same values.

Regards
Mark

trangntd
Explorer
0 Kudos

Hi Mark,

Thanks for your information.

This is a request from my client's accounting service team.