This document can be used to register the costs of capital improvements made to the fixed asset and to change the parameters
resulted from these improvements as follows:
Increase the gross cost of the fixed asset by cost of capital improvements made to this asset and confirmed by documents.
Change the depreciation calculation parameters, for instance, extend the useful life of the asset, or increase the estimated
production volume.
Calculate the depreciation cost in the month when capital improvements took place.
Take into account the costs and receive to warehouse the inventory items extracted from the fixed asset during improvements.
Create invoice received and create capital Improvement (new documents)
It can be used for creating deprecation, extend useful life, change calculations parameters.
2. Record deprecation for that month using this document.
3. Extract the cost, receive the inventory (extracted from the fixed assets) under the warehouse
Capital improvement document-
There are two tab- fixed assets and Extracted inventory
Add the fixed asset-it will pick up all the current balance of the fixed asset, To fill the capital improvement, click on fill option, it will
Fill automatically the below details.
I can changed the parameters under revised column
For extracted inventory, we can add the fixed asset, add the item, add the unit cost (this is the cost which will be the cost price of the item)
This will reduce the capitalized cost