Calculation of depreciation when an asset is added
After calculating the prior depreciation, the entire catch-up depreciation for
the previous depreciation period is recovered at the end of the current period.
The remaining periods in the year receive the regular depreciation.
| Compute option | Yes |
|---|---|
| Journal entries that are generated |
|
| Result | |
| Additional steps that are required | If the in-service date for the asset is from a prior and closed year, then you must manually post the Global Ledger journal entries for the accumulated depreciation of the prior year's depreciation expense. The asset book year-to-date amount for the current period is the same as the asset that is routinely depreciating since its in-service date. |