A balancing offset adjustment is where you offset the profit resulting from the sale of an asset against the cost of the replacement asset. The profit on sale is not accessible, but you are required to reduce the cost of the replacement asset, thereby also reducing the depreciation (which thereby offsets the tax free profit made on the sale). Balancing offset adjustments only apply: The offset can only be assigned to certain classes of assets: A balancing offset adjustment should not be required very often (as it only occurs when it is an involuntary disposal and a profit is made on the disposed asset). It is therefore not supported in MYOB Assets Live. If you want to account for a balancing offset adjustment, when the replacement asset is added, create 2 assets instead of 1; This way the cost of all the assets in the asset register will match cost according to the balance sheet / general ledger and the correct amount of depreciation will also be claimed. |