How to return items to Fixed Asset Store after 1 year of usage?

[pyramid]

Dear Friends,

We have a major case in our fixed asset inventory circulation & we need your support to solve this issue.

We purchased fixed asset items & received it in our store. And this increases quantity on hand & then we issue this item to Employee or department using P4112 and this will debit our fixed asset account & credit Store Inventory account.
Now the problem comes when we want to return our item after usage of 6 month or 1 year or any period to our FA stores. This item couldn’t be shown on hand in our store unless if we come to reverse our Issuance doc(II) & When we are reversing II/voucher cost of item remains same as it was bought an year ago. And here we face two major problems that value of item is not depreciated when we returned it to store, secondly how should we suppose to return our item to store after one year when year accounts are being closed & settled in Accounts.

I need to things:
1. How to return the item to our store after the usage of one year?
2. Depreciation of item after one year usage?

Thanks..............


PH
JDE Consultant

 

[joelsandberg]

Two separate issues, tracking quantities in inventory and depreciating fixed assets. It is difficult to "uncapitalize" an item once you have issued it as a fixed asset. You have to worry about net book value, not just the asset cost account. You also have to worry about the value of the asset in the F1202, not just the F0902, and the impact of changing the asset cost basis on depreciation.

Best solutions for this problem will leave the asset value in the fixed asset account and track items once they have been capitalized (by serial number) in inventory with zero value. You can then get the value of capital items in stores by joining the F41026 and F1202 tables by serial number. Whether the item continues to depreciate or not while in inventory is a business decision, which I've addressed in a previous post.

If you are working with capital spares, capitalized components, or rebuilt/remanufactured items, I have some more advice as well, but that's another thread.