Fixed Asset Split Posting needs a separate posting profile.

For fixed assets that have depreciation in prior (closed) periods, the depreciation has been posted with the following transaction:

Debit to Depreciation Expense (P&L Account that is closed out to Equity at the end of the year)

Credit to Accumulated Depreciation for the asset (perpetual account that stays on Balance Sheet)

If the Fixed Asset is Split AFTER the period has been closed, there should NOT be any hit to Depreciation Expense (P&L) for the prior periods. The transaction that I am seeing when I post the asset split is the following:

1. These two make sense and should remain
2. Credit to Fixed Asset Subledger Asset 1 (Acquisition Adjustment to subtract the value Split out) | Offset of FA Main Account (ledger)
3. Debit to Fixed Asset Subledger Asset 2 (Acquisition to add split value) | Offset of FA Main Account (ledger)
4. These do NOT make sense and should be consolidated
5. Debit to Depreciation Adjustment Asset 1 (moving portion of Accumulated Depreciation from Asset 1 out) | Offset Depreciation Expense (P&L)
6. Credit Accumulated Depreciation Asset 2 (moving portion of Asset 1's accumulated depreciation onto Asset 2) | Offset Depreciation Expense (P&L

The problem with the journal entries described in Section 2 is the following:

• The period has already been closed. The Depreciation Expense Account cannot be posted into without opening the period again
• If the period IS opened again, the entire year-end close process will have to be run again, moving the balance of Depreciation Expense (theoretically 0 in this case since its a debit and credit of the same amount) to Equity.
• There is no reason whatsoever to post to Depreciation Expense retrospectively. It is much more efficient and in accordance to generally accepted accounting principles to adjust Accumulated Depreciation only (on the subledger level).
• Undo the Accumulated Depreciation of Asset 1 (debit) | Offset Account credit to Accumulated Depreciation of Asset 2