cancel
Showing results for 
Search instead for 
Did you mean: 

Doubt in the Fixed Asset Clearing Account and revaluation transaction in SAP B 1

helen_jim
Participant
0 Kudos

Dear Expert,

I am writing to seek clarification regarding the journal entries created during asset revaluation and the netting off of the Fixed Clearing Account.

Specifically, I have a doubt regarding the journal entries created when an asset with unplanned depreciation undergoes revaluation resulting in a decrease in value. As per my understanding, the reduction in value will be used to decrease the revaluation reserve, and any excess will be recognized as unplanned depreciation and taken as a loss. The system will create the following entries:

CR Asset A/C DR FA Clearing A/C CR Accum Depn A/C DR Depreciation A/C

I would like to know if there will be any difference in the journal entries if the asset had undergone planned depreciation only. As per my understanding, in such a scenario, the journal entry will be CR Asset A/C and DR FA Clearing A/C only. Kindly confirm if my understanding is correct.

Additionally, I would like to know how the system nets off the Fixed Clearing Account, which is a suspense account in the balance sheet. From my understanding, the account should be reconciled to ensure a zero balance is reflected in the financial records. However, I am curious to know if it shows only a single entry without any offsetting, will the account continue to have a balance in the General Ledger indefinitel Kindly provide your insights.

Thank you for your time and help.

Kind regards,

Helen Jim

Accepted Solutions (0)

Answers (1)

Answers (1)

Abdul
Active Contributor
0 Kudos

Hi Helen,

Fixed asset clearing should not be used in revaluation, that account should be used only in case of acquision/purcahse. It seems you have fixed asset clearing account in revaluation reserve clearing account. Please check account determination in your system.

The revaluation reserve clearing account should be an equity GL and it should be different thant the asset clearing account

helen_jim
Participant
0 Kudos

Hi Abdul,

Thank you for your response. I would appreciate some clarification regarding the accounts used in the asset value increase. Specifically, I am curious about the posting process for revaluation. Would it look something like this:

  • For assets without unplanned depreciation or impairment :

    • Credit Asset Revaluation Reserve A/C
    • Debit Asset Revaluation Reserve Clearing A/C
    • or impairment
  • For assets with unplanned depreciation or impairment:

    • Credit Asset Revaluation Reserve A/C
    • Debit Asset Revaluation Reserve Clearing A/C
    • Credit Accumulated Depreciation A/C
    • Debit Depreciation A/C

Additionally, I am curious about how the system nets off the Asset Revaluation Reserve Clearing A/C.

Best regards,

Helen Jim