Generating a Depreciation Schedule

The third step in creating a Fixed Asset file is to generate a depreciation schedule. To generate a depreciation schedule:

  1. On the Fixed Assets form, specify the Useful Life and Date to Start Depreciation for the asset.
  2. Open the Fixed Asset Depreciation form.
  3. Select Actions > New.
  4. In the Asset Number field, select an asset.
  5. The Class Code field is read-only and shows the class code for the asset.
  6. Select the Depreciation Code:
    • BOOK
    • TAX01
    • TAX02
    • VALUE
  7. In the Depr Method field, select the desired method of depreciation:
    • sl = Straight line
    • syd = Sum-of-the-years' digits
    • usage = Production or use method
    • 125db = 125% declining balance
    • 150db = 150% declining balance
    • 175db = 175% declining balance
    • 200db = Double declining balance

    For details about calculations performed for these depreciation methods, see About Depreciation.

    Note:  To use a custom depreciation method that you defined, you must first define it using the Fixed Asset Depreciation Tables form.
  8. In the Depr Frequency field, select the frequency for calculating depreciation (Year or Period).

    The system depreciates the asset when the Generate Depreciation activity is finished. There is no special setting for depreciating an asset for part of a year or part of a month.

    For example, if an asset was purchased in July, and you want to accumulate 1/2 year of depreciation, run the Generate Depreciation utility for the months of July through December, assuming periods equal calendar months. The number of times the utility has been run is the number of months the asset is depreciated.

  9. To switch to the straight-line method, when the straight-line method results in a greater depreciation deduction than the user-defined or declining balance methods, select the Auto Crossover check box.

    During depreciation generation, if a switch to the straight-line method has occurred, the Auto Crossover field is selected.

  10. Enter appropriate information in the optional fields as desired, or accept the default values and settings.
    • Bonus Depr: Select for additional, special expensing, or depreciation of an asset less the depreciable basis. You must enter it manually and post it to the General Ledger.
    • Bonus Depr Code: Enter the code that explains the bonus you chose in Bonus Depr field.
      Note:  For additional, special expensing or depreciation of an asset during its first year, enter both the Bonus Depr and Bonus Depr Code.
    • # Units to Depr: Enter the number of units to depreciate. You can enter this field in two ways:
      • For assets that use the usage depreciation method, enter the number of units in the asset's life.
      • For assets that do not use the usage depreciation method and use a depreciation frequency of Period, enter the number of accounting periods over which to depreciate the asset.

      This field is linked to the Useful Life field on the Fixed Assets form.

      The system calculates the default amount by accessing the useful life and the number of accounting periods from the General Ledger. This value does not decrease.

      Note:  If ThailandCountryPack is enabled on the Optional Modules form, the number of units to depreciate is incremented by one when the depreciation method is not USAGE and the acquisition date falls between the start and end of the specified accounting period. For example, if the depreciation frequency is set to Period (usually 12 in one year) and the acquisition date is 10-Jan-2013, then for a "Useful Life" of 5 years the number of units to depreciate is about 61 (12*5 + 1) instead of 60 (12*5). Similarly, if the acquisition date is specified to the beginning of the month (1-Jan-2013) then the number of units to depreciate is 60 (12*5).
    • Units Depreciated: Enter the number of units that have already depreciated. This number cannot exceed the number of units to be depreciated.
    • Accum Depr: This field displays the accumulated amount of depreciation for this asset.
      Note:  You must include the bonus amount in the Accum Depr and YTD Depreciation fields before generating depreciation. You must post the bonus amount manually to the General Ledger. You also must reduce the Bonus Depr field amount by bonus amount that you included in the Accum Depr and YTD Depreciation fields.
    • YTD Depreciation: This field displays the amount of depreciation year-to-date.
    • Curr Period Depr: Enter the asset's depreciation amount for the current accounting period. It is calculated when depreciation is generated. If this value is 0, the asset will not post.

      This field is linked to the Date to Start Depreciation field on the Fixed Assets form.

    • Last Post Date: This field displays the last date depreciation was posted for an asset.
      Note:  If you want a salvage value, enter the estimated value of an asset at the end of its useful life. The system does not depreciate an asset below its salvage value.
  11. Select Actions > Save.
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