The Financial Adjustment tab displays the financial history for the asset. Financial adjustments are changes made to the value of the asset. Adjustments are made in a depreciation book for the asset, and can be applied to multiple depreciation books if you wish. This tab is available to Fixed, Equipment, Property and Software assets.
Existing financial adjustments can be edited or deleted with some exceptions:
The special "Acquisition" financial adjustment entry for each asset can be edited, but never deleted.
Only the most recent revaluation entry can be edited.
The status of the asset must be New, In Store, Issued or Repair.
Changes to financial adjustments in a depreciation book that is a Tax Book cannot be made unless you have rights to the special Tax Book alteration access right.
Pinnacle includes four different financial adjustment types:
Acquisition - This adjustment holds the acquisition information for the asset, and is automatically created by Pinnacle when the asset is added. Pinnacle will use the default depreciation values that have been set up in each depreciation book for the asset type selected for the asset. You can edit an acquisition adjustment, but cannot delete it. You cannot add more than one acquisition adjustment to the same depreciation book, however the asset may have a different acquisition entry in each different depreciation book.
Net Revaluation - This adjustment is used to alter the current written down value of an asset. Revaluation adjustments are not permitted in depreciation books that have been flagged as tax books to avoid the possibility of claiming more depreciation than the original acquisition price. When a Revaluation Adjustment is made, Pinnacle will write back any accumulated depreciation for the asset i.e., on the day that it is revalued, Pinnacle will regard the asset as having zero accumulated depreciation. Depreciation will accumulate on the revalued amount commencing on the adjustment date. If components exist for an asset, you should include their values in any revaluation amounts, since Pinnacle assumes that this is done when calculating depreciation amounts.
Gross Revaluation - This adjustment is used to split the revaluation amount into a gross cost value and an effective accumulated depreciation amount. Revaluation adjustments are not permitted in depreciation books that have been flagged as tax books to avoid the possibility of claiming more depreciation than the original acquisition price. The total existing acquisition cost and the accumulated depreciation amounts are reversed and posted to the revaluation reserves. The new gross cost value and accumulated depreciation figures are then posted to the existing accounts. Depreciation will accumulate on the gross cost value commencing on the adjustment date. If components exist for an asset, you should include their values in any revaluation amounts, since Pinnacle assumes that this is done when calculating depreciation amounts.
Adjustment - This adjustment is a simple addition or subtraction to the value of the asset at the date of the adjustment. An Adjustment is used to alter the remaining life of an asset without affecting the current written down value of the asset, or to record additions to an asset's value when money is spent on the asset.
The Financial Adjustments tab is divided into two sections. The left section of the tab is a summary list of all the adjustments that have been added for the asset. The right section is the full details of the adjustment that is highlighted in the browse section. You add and edit the information for an adjustment in the right section of the window. The adjustment information on the tab is:
Acquisition Date/Adjustment Date/Revaluation Date - This is the date that the adjustment is to apply from. When a new adjustment is added, this will default to the current date. If the adjustment is an Acquisition adjustment, this date is labelled Acquisition Date, and is the date of acquisition of the asset in the selected book. If the adjustment is a Net or Gross Revaluation adjustment, this date is labelled Revaluation Date, and is the date of revaluation of the asset in the selected book.
Acquisition Price/Net Revaluation Amount/Gross Revaluation Amount/Addition Amount - If the adjustment is an Acquisition adjustment, this field is labelled Acquisition Price, and is the value that the asset was acquired for. If the adjustment is a Net Revaluation adjustment, this field is labelled Net Revaluation Amount, and is the value of the asset to apply as at the adjustment date. If the adjustment is a Gross Revaluation adjustment, this field is labelled Gross Revaluation Amount, and is the gross cost value of the asset to apply as at the adjustment date. If the adjustment is simply an Adjustment, this field is labelled Addition amount, and is the value to add to (or subtract from) the asset written down value as at the adjustment date. Addition amounts are simply added to the asset's written down value, and do not affect accumulated depreciation prior to the adjustment date.
Accumulated Depreciation Amount - The amount of which the asset has already depreciated. This field is only available for gross revaluation adjustments.
Revaluation Basis - The basis used to arrive at the revaluation amount. This field is only available for net or gross revaluation adjustments.
Depreciation Rate - The depreciation rate to apply to the adjustment. You must enter a depreciation rate, and the rate must be between -999.99% and 999.99% inclusive.
Retirement Date - The date that the asset is expected to reach its residual value.
Residual Value - The expected amount to be recovered when the asset is disposed of at the end of its useful life.
Adjusted By - The user ID of the user making the adjustment. This defaults to the current log in ID, but may be overwritten if necessary.
Comments - Comments relating to the adjustment.
When you add a financial adjustment, Pinnacle will default some of the information in the adjustment to the values from the most recent adjustment. This means that you may only need to change one or two fields to the new values.
Open the asset that you want to add the financial adjustment for.
Change to the Financial Adjustments tab.
Select the depreciation book that you want to add the adjustment for.
Choose New from the File menu
OR
Choose New from the popup menu
OR
Click the New toolbar button.
Pinnacle will display a dialog for you to select the type of adjustment you wish to add, either Revaluation to Net Value, Revaluation of Gross Asset Value and Accumulated Depreciation or Other Adjustment. If the depreciation book is a tax book, you cannot add a net or gross revaluation adjustment.
Choose the type of adjustment you want to add, and click the OK button.
If you select either revaluation options and you have the 'Show Revaluation Notice' option selected on the Asset Default's Revaluation Notice tab, you will be presented with a notice about performing revaluations. Click the OK button is you wish to proceed.
Type in the adjustment details.
Choose Save from the File menu
OR
Choose Save from the popup menu
OR
Click the Save toolbar button.
Pinnacle will display a dialog asking if you want to apply the new adjustment to the current depreciation book only, all non-tax depreciation books, or all depreciation books.
Choose which book you want to apply the adjustment to, and click the OK button.
Pinnacle will apply the adjustment to the books you selected.
The fields on the Financial Adjustment tab are all very closely related. Changing any value may mean that you need to recalculate some other value to accurately reflect the adjustment. For example, changing the Adjustment Date may mean that the Retirement Date needs to be recalculated.
If you change the Depreciation Rate, Retirement Date, Residual Value, Adjustment Amount or Adjustment Date for a financial adjustment Pinnacle will ask you which of the other values is to be recalculated.
You can choose which field you would like to recalculate, or choose not to recalculate any fields if you don't want to change the values. If you choose to recalculate a field, Pinnacle will then automatically recalculate the selected value and update the Financial Adjustment entry to reflect the change.