Revert and reverse correction treatments in Fixed Assets Management

The Correction treatment setting determines how Fixed Assets Management handles corrections to processed transactions.

Choose one of the following options:

• Revert: Deletes the original transaction and journal entries.

• Reverse: Preserves the original transaction and journal entries and creates separate journal entries to offset the original transaction.

For example, an asset is disposed of by mistake. If the disposal is reverted, the disposal record and related journal entries are deleted. If the disposal is reversed, the disposal record is retained and reversal journal entries are created to offset the original postings.

Available actions

Revert

When Correction treatment is set to Revert, the following actions are available:

• Revert capitalization

• Revert place in service

• Revert depreciation

• Revert asset transfer

• Revert asset split

• Revert partial disposal

• Revert full disposal

• Delete AP adjustments that adjust asset cost

Reversal actions are not available.

Reverse

When Correction treatment is set to Reverse, the following actions are available:

• Reverse capitalization

• Reverse depreciation

• Reverse asset transfer

• Reverse partial disposal

• Reverse full disposal

Revert actions are not available.

Additionally, the following restrictions apply:

• Transactions that have been reversed cannot later be reverted.

• Assets with reversed transactions cannot be deleted or moved back to the Ready for review state. Perform a full disposal or deactivate the asset instead.

• AP adjustments that adjust asset cost cannot be deleted. To correct an adjustment, create another adjustment to offset the original adjustment.

Switching between correction treatments

By default, the correction treatment is set to Revert. You can switch between Revert and Reverse at any time. The current setting determines which correction actions are available. Changing the setting does not affect transactions that have already been reverted or reversed.

When to reverse

Some organizations operate in regions where accounting requirements prohibit deleting or modifying posted transactions. Use Reverse when you need to preserve the original transaction while recording a correction.

Reverse provides the following benefits:

• Preserves a complete history of posted transactions and corrections.

• Supports accounting requirements that prohibit changing or deleting posted entries.

• Helps reduce the risk of altering historical financial records.