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Increase in capitalization and Running Depreciation for the increased Value

Former Member
0 Kudos

Hi Friends

Our Client was taking tax input credit for capital assets all these years. He has been now told that he was not liable for the credit and should have capitalized this input credit value. He has not utilized any of this credit.

Now he wants to capitalize this input credit value to the Asset & depreciate the assets from their respective capitalization dates.

In short, they want to increase the capitalization value on back date and run the depreciation. Can someone list down step wise process if they have done something like this.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos


First is you cannot record the asset value in past years for which legal record is finalised.

Secondly you can have asset posting for maximum two years as asset accounting period can be open for maximum two years. So you need to post the entry in the period which is open and for which accounts are not finalised.

Now if you are posting the tax credit in last year, and assuming that for last year all 12 period depreciation run is completed system will post the difference in period 13. Or else it will post the difference in current posting run.


Answers (0)