EAM: Receipt Cancellation Does Not Reverse Accounting Entries for Assets Below Capitalization Threshold (Doc ID 2682134.1)

Last updated on JANUARY 29, 2024

Applies to:

Symptoms

Assets below a particular threshold are getting created as physical assets and are immediately expensed (no depreciation). The source of the asset creation is the receipt. Assets created from the receipt with capitalization below threshold  generate the following accounting entries:
Dr. Expense
Cr. Contra

When the receipt is cancelled and the cancellation is interfaced into AM, the asset is disposed but the system is not reversing the expense accounting entry.


It was expected that the expense accounting entry would be reversed because the receipt is cancelled.


This issue can be replicated by performing the following steps:

1) Set up a capital threshold for book method and assign it to the accounting entry generating book on the asset profile.
2) Create a PO for an asset that is under book cap threshold.
3) Interface PO to Asset Management to generate asset.
4) Run the Clearing Reconciliation process.
5) Review Financial Entries and note that ADD/AP and ADD/EX entries are created.
6) Cancel Receipt and interface to Asset Management.
7) Run depreciation for asset retirement.
8) Create Accounting entries for asset retirement.
9) Review Financial Entries and note that RET/FA entry only is created. The ADD/EX entriy is not reversed.

Refer to replication steps here.

Refer to replication data here.

Changes

Cause

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