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what's the need for capitalization date and 1st acq. posting date?

Former Member
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hi guys,

i was wondering what the system would do with capitalization date and first acquisition posting date ??

and what will be the problem if i entered an asset value date (in the acquisition transaction) that's earlier than the capitalization date entered in the asset master record ?!

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Answers (4)

Answers (4)

Former Member
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guys, excuse me but i couldn't find forums for real estate .. so , am gonna post a thread here and i hope it can be answered.

when i'm creating a contract (term tab) there r 2 fields i dunno why would they differ from each others . therse 2 fields are CASH FLOW FROM & FIRST POSTING FROM .

isn't it necessary to have the first posting date identical to the cash flow starting date ?!!

Former Member
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In practice all assets are not put to use right from the date of purchase.Hence the concept of different dates arises. One being the acquisition date and the other Capitalization date.

I would buy an asset today but start using it from a later date. Depreciation has to be calculated from the date of capitalization and not acquisition. But still for record purpose date of purchase would be important. Hence both the dates are maintained.

Hope this has clarified your doubts.

Thanks

GU

Former Member
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i know the logic or the concept of the acq. date and capitalization date but what i mean what limitaions will they provide ?!

and why would i enter an asset value date different than the acq. date ?!!

Former Member
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Normally, depreciation is calculated from asset usage date..... not from the acquisiion date.

Business might have purchased the asset but installation is completed at later date, than depreciation will be calculated from commercial operations commencement date. In this scenario, asset acquistion date and capitalization date will be different

Former Member
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First acquision date is the date on which acquision for the asset is posted first time. The capitalization can be later than first acquision date. Though the asset is acquired earliar date, if asset is put to use at later date, that date will become capitalized date