This document describes how M3 Business Engine calculates and distributes depreciations proportionally to the warehouses or facilities within the same division in which rental equipment registered as fixed assets have been stored during a period. The distribution is based on the time each fixed asset has belonged to each warehouse or facility.
Use this information to adjust the accounting rules in 'Accounting Rule. Set' (CRS395) in order to enable the distribution of depreciation.
When a fixed asset is purchased, the accounting string from the invoice that indicates the financial ownership is saved in 'Fixed Asset. Open' (FAS001/G). This accounting string is based on accounting rule PP20-903, which represents the expense transactions for the invoice amount and any invoice line charges that are created at invoice matching. The warehouse and facility can be retrieved from the purchase order and included in this accounting string, provided that the corresponding control objects are included in accounting rule PP20-903.
If the piece of equipment that is registered as a fixed asset is moved based on a distribution order, this order updates the table for stock transactions, MITTRA, with a transaction of type 50. The transaction contains information about the warehouse and facility from which and the warehouse and facility to which the equipment was moved. The transaction date of the transaction identifies when the movement was made.
These MITTRA values, together with the division that is retrieved from the MITBAL table, are used to determine the distribution of the depreciation per warehouse or facility. When you update the general ledger with depreciated amounts by triggering a depreciation run for a combination of depreciation type and period in 'FA Depreciation. Create Account Entries' (FAS100), M3 Business Engine automatically detects any such transactions involving movement between warehouses and facilities and identifies the fixed asset based on the item number stored for the fixed asset in (FAS001). The depreciation is then distributed automatically, using the transaction date to allocate the periodic depreciation percentually between the previous and the current warehouse or facility. These transactions are based on accounting rule FA10-510.
Distribution of depreciation requires that the accounting rule FA10–510 is defined in 'Accounting Rule. Set' (CRS395). FA10-510 represents the depreciations recorded.
If the fixed asset was not moved within the period, M3 Business Engine retrieves the values from the purchase transaction in the MITTRA table to identify the warehouse and facility and populates the depreciation accounting string based on accounting rule FA10-510 with these values.
If the fixed asset was not acquired by means of a purchase order, there will be no transactions in the MITTRA table and an accounting error occurs. To avoid errors, exceptions for accounting rule FA10-510 must be defined. For example, the standard accounting string could define that values should be retrieved from the accounting string stored for the fixed asset in the fixed asset master table, as displayed in 'Fixed Asset. Open' (FAS001/G), or more precisely, from accounting dimensions 2 to 6 (accounting control objects FMAIT2–FMAIT6) in that accounting string. An exception could define that when a warehouse ID (accounting control object WHLO) is between a specific range, then the warehouse should be included in accounting dimension 3 and facility (accounting control object FACI) in accounting dimension 4, to give just one example.
A fixed asset was located in warehouse A at the beginning of August 2009. On August 10, the fixed asset is moved to warehouse B, and on August 15 it is moved to warehouse C:
The depreciation type of this fixed asset stipulates that depreciation should be done each month. The total depreciation amount for this fixed asset for August 2009 is USD 1,200. When you run (FAS100), three account entries are created with the amounts calculated based on the number of days in each warehouse: