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LaCresha

Best practice for handling an asset that should not have been capitalized

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In 2014 there were two software subscriptions that were capitalized that should not have been.  This was discovered in January 2015.  What is the best practice for handling an asset that was capitalized in a prior period, but should not have been?  I don't want to dispose of the asset because essentially it should not have been capped in the first place so it should not get disposed instead it should be amortized over a 12 month subscription period and not capped as software.

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    Hello LaCresha,

    If these assets should not have been capitalized in the first place then you have two options outside of disposing them:

    1. Inactivating the assets will leave the asset records intact but will not appear on any depreciation related reports. You can still see them in the asset list view and asset detailed view. You would select the assets in question and click Asset menu, Inactivate assets.

    2. Delete assets will remove the asset records including their depreciation amounts as well. Select the assets in question and click Asset menu, Delete assets.

    If you have any additional questions/concern please post them here or call our support team at 1-800-331-8514.

    ~Lovisa

*Community Hub is the new name for Sage City