You are switching to ABRA Flexi and need to set up an asset that has been partially depreciated in a previous accounting system. This article will show you how to do it.
Creating an Asset Card
Use the "New" button to create an asset card, where you will fill in the asset type and category. The acquisition price equals the initial purchase cost. The purchase date represents the actual date of acquisition, e.g. 01.02.2018. Fill in the remaining details on the "Basic Sheet" tab.
Depreciation Tab
Continue to the "Depreciation" tab, where you will overwrite the classification date with the date from which you want to start depreciating the asset in Flexi.
In the "Depreciated at classification (months)" field, enter the number of accounting months already depreciated in the previous system. This means the period from the first accounting depreciation in the previous system up to and including the month preceding the start of accounting depreciation in Flexi.
Enter the residual value for both tax and accounting depreciation.
Next, fill in the "Start date of tax and accounting depreciation", which should match the "Classification date" in Flexi.
In the "Create accounting depreciation" field, select YES and enter the "remaining months to depreciate" = the remaining number of depreciation months according to the depreciation group of the given asset.
Select the depreciation method and the asset's depreciation group from the list.
Then select the "Generate Depreciation" option in the upper right corner of the asset card.
The result is the generated accounting and tax depreciation entries based on the entered parameters.
Notice of a Bug in Previous Versions
Starting from version 2023.3, an incorrect behavior has been fixed.
For tangible and intangible fixed assets partially depreciated in another system where the number of months entered in "Depreciated at classification" was greater than the monthly depreciation period/extraordinary depreciation assigned by the depreciation group, it was not possible to record asset events (suspension of depreciation, resumption of depreciation, disposal).
Posting the Asset Classification
Check the "Post classification" option.
For a new asset, this option is automatically checked — Flexi will create a Classification event and post it.
For a partially depreciated asset, this option is typically automatically disabled (because the classification already took place in the past from an accounting standpoint).
However, if you want Flexi to generate an accounting document for the classification of this asset as well, you must manually check the option.
Debit – enter the relevant fixed asset account in the Primary Account field (e.g. 022 – Movable tangible assets, 021 – Buildings, 013 – Software).
Credit – enter the asset acquisition account in the Classification Contra Account field (e.g. 042 – Acquisition of tangible fixed assets).
💡 Tip: If you are transferring only the residual value into Flexi, it is recommended to also manually post the accumulated depreciation adjustment to accounts 08x (081 – Accumulated depreciation of buildings, 082 – Accumulated depreciation of machinery, etc.) to ensure the account balances match the original records.
Tips and Recommendations
1. Difference Between Accounting and Tax Depreciation
For transferred assets, it is important to set both values separately — accounting and tax.
It may happen that the original system recorded depreciation differently (e.g. tax depreciation was suspended, while accounting depreciation was not).
Recommendation: verify the tax residual value against the tax return and the accounting residual value against the general ledger.
2. Suspension of Depreciation
If depreciation was suspended in the past, this must be taken into account — in Flexi you can also enter a "Suspension" event.
This ensures that Flexi will not calculate depreciation for periods during which no depreciation was actually applied.
3. Asset History
You can save a note in the asset card with information about when and at what amount depreciation was recorded in the previous system.
This will make it easier to verify during an audit or when responding to an accountant's query.
4. Internal Document for Accumulated Depreciation Adjustment
To ensure the accounting records are accurate, it is advisable to create an internal document to post the accumulated depreciation adjustment (e.g. 082/022 for the amount already depreciated).
Flexi then aligns with the actual state and account balances are consistent.
5. Reconciliation Against the General Ledger and Balance Sheet
After transferring assets, it is good practice to verify:
the residual value on account 02x,
accumulated depreciation on account 08x,
that the total of assets in the register matches the balance sheet.
6. Tax Implications
The transfer of a partially depreciated asset does not affect the acquisition cost for tax depreciation purposes.
The tax authority requires that depreciation in the new system continues based on the residual value and depreciation group.
7. Most Common Mistakes When Transferring Assets
Recording the asset at residual value only (the correct approach is to record the full acquisition cost and accumulated depreciation separately).
Overlooking the difference between accounting and tax depreciation.
Incorrectly setting the number of months already depreciated.
Failing to perform a reconciliation between Flexi and the original system.