Changing a Fixed Asset's classification and estimated life

Virginia Akes

Hi all. We have an asset that was set up in 2013 and marked with “Building” Classification, for us this type of asset has a depreciable life of 40 years, I discovered this last week. The asset is for 2 Water Heaters (Commercial Grade) and should have been classified as “Equipment” with depreciable life of 10 years. The question is, has anyone changed the classification of an asset that has been depreciating for several years? I see that you can do that, but was not sure how it affected the depreciation that has already posted.

We do not typically post our assets to the GL from the Fixed Asset Module, but we do post the depreciation to the GL from Fixed Assets each month. I figured I would need to do a JE to reclass the asset to the the correct Fixed Asset GL Account, do I also have to move the accumulated depreciation?

Thanks in advance for your help.