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What is the difference in add investment and change acquisition value ?, how will it impact depreciation ?

Both are used to change value for an object which is in status active. The difference lies on the purpose of changing the value

  • Add Investment​ - Investment changed probably because the invoices have not been received before the asset is activated. OR an actual addition has been made to the asset.​
  • Change Acquisition Value​ - A value change due to an appreciation which is more likely a drastic change in the value of the asset, Inflation or any other revaluation of the object. When you are changing acquisition value, it must be fully depreciated up to the event date for all the books before it can be carried out.

How depreciation will get impacted depends on your depreciation method and the options selected within the method (example : Base value type, Add investment starting principle and more)


Hi,

Thanks for the explanation. Is there any difference in reporting (GL entries) in IFS on above.


Hi ​@Awije,

Yes. There is
Additional investment, the amount will be posted using FAP0 Posting. If the added investment amount is positive, it will be counter-posted using FAP14 Increase of Add Investment, Counter Posting, Acquisition Value. If the added investment amount is negative, it will be counter-posted using FAP29 Decrease of Add Investment, Counter Posting, Acquisition Value.

Change Acquisition Value - The amount will be posted using FAP0 Posting. If the change in the acquisition value is positive (an increase in the acquisition value), it will be counter-posted using FAP13 Increase of Acquisition value, Counter Posting, Acquisition Value. If the change in the acquisition value is negative (a decrease in the acquisition value), it will be counter-posted using FAP28 Decrease of Acquisition Value, Counter Posting, Acquisition Value.

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Thanks

Zuha


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