Has anyone ever dealt with Bill credits against active assets? A team member created a bill credit for a laptop back in October2024 , but then disposed of the original laptop in December 2024 Now it appears that the amount is being double counted. We see the credit back in October 2024 and now a credit in December 2024 for the disposal. I can't seem to find any solid information on the proper way to handle credit memos against assets. If possible I don't think we would want to re-open all the way October, so I think the ideal option would be to deal with the disposal that occurred in December 2024.

You can use the write-down feature if a change in asset original value, or fully dispose of the asset on the register and manually link the source transaction in the details for audit trail purposes. I don't believe you can propose negative assets, so using the formal FAM asset transaction types (like write-down, write-off, dispose, etc.) is the right approach. The goal should be to have your GL reconcile to your subledger at each period close, so you can create adjustments to reflect this if the desire isn't to open prior periods.

By the word "Credit", I believe what you mean is a "Bill Credit" and not "Credit Memo". And I believe, in the Bill Credit you are using the same item as you use in Vendor Bill, right? If my assumptions are correct, then the problem is you are using the same item as in the Vendor Bill, you should use a different item which the expense account is directed to "Gain or Loss on Asset Disposal" account. If you do this, the GL Impact of your Bill Credit will be (Dr) Account Payable (Cr) Gain or Loss on Asset Disposal Then, when you dispose your asset on Dec, the GL impact will be (Dr) Accumulated Depreciation (Cr) Asset (Dr) Gain or Loss on Asset Disposal