Depreciation calculation for added assets
After choosing to have a previous depreciation that is calculated at the time an asset is added, the entire catch-up depreciation for the previous depreciation periods is recovered at the end of the current period. The remaining periods in the year receive the regular depreciation.
Calculation | Description |
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Compute Option | Set to Yes |
Journal entries that are generated at the addition time |
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Result | The asset book year-to-date amount for the current period is similar to the asset that is routinely depreciating since its in-service date. |
Required additional steps | If the in-service date for the asset is from a previous and closed year, then you must manually post Global Ledger journal entries for the accumulated depreciation of the prior year's depreciation expense. |