Suggested by Sreepriya Kolagani – New
If we utilize the Adjustment Wizard functionality, we can only make changes to the asset for periods after the last posting date of transactions related to the leased asset – i.e. for transactions that will occur in the future and not for historical entries. We believe this is by design.
If we do this and reduce the payment amount in the remaining months, we get an adjustment journal posted to Credit the Leased Asset and Debit the Lease Liability. Amortization and depreciation schedules for the remaining periods are updated with reduced amount i.e the depreciation amounts are the remaining net book value / no of remaining depreciation periods to calculate the remaining depreciation monthly posting.
In this scenario, we have migrated the Asset and inadvertently made an error i.e. this could be wrong lease duration, wrong payment amounts etc. We were hoping that the Wizard or the Adjust book functionality would allow us to correct these and do the necessary adjustment journals for Lease Liability, Revised ROU amount and corresponding Depreciation adjustment / Interest Adjustment journals.