NetAsset - Adjustment Book - Example and Implications

Overview

This article walks through the journal entries in NetAsset if an adjustment book is used on the alternate schedule. 

Prerequisite

  • In order to run a journal entry to multiple accounting books, you have to first ensure that you have correctly configured your multi-books and generated alternate depreciation schedules.

Step by Step Process

1) How to Set it Up

  • When creating an asset and using the adjustment book, do not specify an accounting book on the asset's main schedule by leaving the "Accounting Book" field blank. 
    • Specifying an accounting book on the asset's main schedule could lead to incorrect reversals and inaccurate GL balances (when also using the adjustment book on the alternate schedule.) 
  • The user should only list the adjustment book on the NetAsset alternate schedule schedule being used for the adjustment book.
  • By not specifying an accounting book, the main schedule's journal entry will post in all books, and the adjustment book's schedule will only post in the adjustment book.

2) How it Works

  • When journal entries are run, the user will see a link to the depreciation entries on both the main asset schedule and adjustment book schedule. 

  • The main schedule shows the standard/custom depreciation journal entry.
    • On the GL Impact subtab, the standard depreciation entry is made in each accounting book. 
    • The impact of the journal entry is also included in the adjustment book through the primary book entries.
      • It is important to note that any entries made in the primary book will flow to the adjustment book. 

  • On the alternate schedule, a Book Specific Journal Entry is made only to the adjustment book. 
    • The standard depreciation entry to only the adjustment book will show on both the "Lines" and "GL Impact" subtab. 


  • While both sets of journal entries are correct, the user will notice that the impact of the depreciation entry hits the adjustment book twice. 
    • The balance was first posted to the adjustment book through the primary book on the main schedule's entry and a second time to the adjustment book through the secondary schedule's entry. 
    • To avoid the entry from being double posted a reversing entry is automatically made by NetLease and included in the book specific journal entrt 

3) Where to Find the Reversal

  • In NetAsset, the reversal is an automatically created, separate entry. 
  • The entry can be found under the Related Records subtab on the main asset record. 

  • To see the book specific reversal entry, select the Transaction Name or Date of the corresponding reversal journal. 
    • This entry reverses the impact of the original entry on the asset's main schedule. 
    • The reversal entry's GL impact hits the Adjustment Book.


Was this article helpful?