A cost adjustment includes any adjustment that affects the recoverable cost, including a change in cost, salvage value, depreciation, and cost, depreciation expense, ITC ceilings, or bonus rules. You can manually perform a cost adjustment in the Books window or in the Source Lines window. You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions.

You can choose to expense or amortize the adjustment. See: Amortized and Expensed Adjustments

Cost Adjustment Examples

This section illustrates the following types of cost adjustments:

• Cost Adjustments to Assets Using a Life-Based Depreciation Method

• Cost Adjustments to Assets Using a Flat-Rate Depreciation Method

• Cost Adjustments to Assets Using a Diminishing Value Depreciation Method

• Cost Adjustments to Assets Depreciating Under a Units of Production Depreciation Method

• Cost Adjustments to Capitalized and CIP Source Lines

• Cost Adjustment by Adding a Mass Addition to an Existing Asset