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Function documentationCapitalization Credit Memo Locate this document in the navigation structure

 

A capitalization credit memo, which reduces the acquisition and production costs of an asset, essentially represents the opposite of an invoice for a purchased asset.

To reduce the acquisition and production costs of an asset, you can use any of the following documents:

  • Capitalization credit memo

    When you reduce the acquisition and production costs of an asset using a capitalization credit memo, you can apply the reduction to any depreciation area associated with the asset. If the depreciation area you specify is not a Posting to G/L area, no journal entry is generated.

    SAP Business One lets you create a capitalization credit memo for multiple assets. If you select all depreciation areas, the system creates a journal entry for each Posting to G/L depreciation area associated with the assets. In the journal entry, the asset balance sheet accounts are credited and the acquisition clearing accounts are debited.

  • A/P credit memo

  • A/P correction invoice

    Note Note

    If you reduce an asset's acquisition and production costs using an A/P credit memo or A/P correction invoice, the system automatically generates a capitalization credit memo.

    End of the note.

  • A/P correction invoice reversal

    Note Note

    If you have acquired an asset using an A/P correction invoice, you can reverse the acquisition by creating an A/P correction invoice reversal. With the reversal, the system cancels the original capitalization document generated upon the creation of the A/P correction invoice.

    End of the note.

When you create a capitalization credit memo for an asset, the credit memo always affects the asset's planned depreciation for the whole year, no matter when in the year the credit memo occurs. If the credit memo occurs in the year of the first acquisition, the asset's depreciation is decreased as of the depreciation start date. If the credit memo occurs in a subsequent fiscal year, depreciation for the asset is decreased as of the beginning of this subsequent fiscal year.

Note Note

SAP Business One considers the asset value date of the capitalization credit memo document as the date when the credit memo actually occurs.

End of the note.

More Information

Capitalization Credit Memo Window