Activation (DDR)

In corporate accounting in the GDR, activation usually referred to the initial recording of financial resources, material stocks of basic and circulating funds and time-limited amounts ( expenses for future accounting periods ) on inventory accounts or as assets in the accounting balance sheet .

The activation served as evidence of the funds tied up in the operational cycle as well as the correct allocation of the fund consumption or the costs to the accounting periods. For basic resources, supplies of materials. unfinished goods and finished goods, financial resources, receivables, etc. a. there was a basic activation obligation. For reasons of simplification, the so-called small items as well as the low-quality or rapidly wearing equipment that is in use are not activated. This could lead to period shifts in the reporting of costs (see evaluation of the basic resources ),

The activation of investments was the value transfer of completed, usable investments in the basic funds accounts or in the basic funds calculation of the companies, institutions, household facilities, etc. a. Billable units accepted by the investor were to be activated at the beginning of their usability. This also applied if there was still remaining work to be carried out that did not impair usability, or if the accounting documents were missing.

In the latter case, the investor had to determine the basic mean value to be capitalized by means of an interim calculation on the basis of the preparatory documents and possibly correct it later. The write-off began of the activation of the basic means of the following month on the first day. The registration unit for the activation was the inventory object .