Depreciation calculation at regular period close

After the depreciation is calculated at the close of each period, the asset catch-up depreciation for the prior distribution periods are spread evenly over the remaining periods for the current year.
Compute option No
Journal entries that are generated
  • Asset (debit)
  • Asset clearing (credit)
Result The depreciation for the prior depreciation periods is fully recovered at the end of the current year.
Additional steps that are required None
Comments Select No in the Compute Option field for assets with in-service dates from the prior period. The depreciation amounts that are displayed for each period are not the expected amounts. Depreciation must proceed at a higher amount per period than its prediction to create the asset's basis depreciate to the end of its life.