The expenditure is lower than the accumulated depreciation

Depreciation following December 31st, 2007:

Fixed asset's cost is €10,000; and the adjustment €5,000.

Post-processing value exceeds adjustment value

Post-processing value which prolongs the fixed asset's useful life equals €6,000 (current adjustmenr equals €5,000).

Posting invoice received for post-processing fixed asset:

Set type 3 and perform posting:

Cost +€1,000, adjustment -€5,000

• the difference between the old and new cost: +1,000 (0400D €1,000, 047C €1,000)
• the difference between the new and old adjustment: -€5,000 (0500C -€5,000 (reversal), 047C €5,000)

JOURNAL ENTRY (from Post Value Adjustment):

Related topics:

• Post-processing Value Less Than Adjustment

For a general description of functions see:

• Upward Revaluation on Acquisition Accounts