Hi,
We acquired an object on 27/10/2022. We then changed the acquisition value by $10.00 on 27/11/2022.
While doing so, we noticed “Retroactive Date” has become the same date of acquisition.
Can someone please explain what is the purpose/effect of the ‘Retroactive Date’ on this object and how it also affects on depreciations?
Thank you!
Hi Nimesh,
The general meaning of retroactive date is “Date to which the transaction will get affected”. That is
for change object value transactions (change net value, change acquisition value, add investment) the
impact will be for the depreciation created after the change object value event. But in the system
we are validating that the retroactive date should be less or equal to the event date and we should have
depreciation done for the event date. Hence if we enter a retroactive date before the event date (which
is allowed) there will not be any impact for the depreciation created. Because we have created depreciation
up to that point already.
Best regards,
Kanishka
Thank you
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