UK Capitalise Accrued Expense

[ask198822]

I have an invoice where in the prior finanical year a purchase order accrual was made for the goods as an expense, these goods have now been idenitifed as being part of a larger project which has been capitalised. As the accrual reverses out in the expense account in the current financial year, my question is, can the invoice still be moved to the fixed asset code and depreciated?

Advice and help will be gratefully appreciated.

 

[kirby]

"can the invoice still be moved to the fixed asset code and depreciated?"

Yes, those costs belong to the fixed asset and so you need to make an adjustment in the current period to do that, if the prior year is now closed.

 

[ask198822]

Thank you Kirby.

 

[John samir]

I have an invoice where in the prior finanical year a purchase order accrual was made for the goods as an expense, these goods have now been idenitifed as being part of a larger project which has been capitalised. As the accrual reverses out in the expense account in the current financial year, my question is, can the invoice still be moved to the fixed asset code and depreciated?

Advice and help will be gratefully appreciated.

Yes, you can reclassify the invoice to a fixed asset code and depreciate it, even if it was initially recorded as an expense in the prior financial year. Ensure proper documentation and compliance with accounting standards.