Asset Depreciation (tffam1205m000)
Use this session to indicate basic depreciation data for assets. Depreciation is a way of allocating the cost of an asset over its useful life for tax and record-keeping purposes. Over time, the value of an asset decreases. You depreciate assets to record this loss of value on a periodic basis.
LN calculates the depreciation amount as follows:
Depreciation amount = Transaction costs / Asset life.
If the costs in relation to the asset life are so low that after rounding off the amount according to the currency definition the depreciation amount approaches zero, the depreciation does not end. Depreciaton transactions with zero amounts are created and the asset net book value is not decreased.
LN calculates depreciation separately for each of the asset's related books. You can depreciate an asset in all of its books at once, or you can depreciate the asset in one or more of its related books. LN uses a frequency to determine whether an asset is eligible for depreciation and how often depreciation must be calculated. LN also uses a depreciation method assigned to each book to determine how depreciation must be calculated. If any of the selected assets contain a life in units in any of the assets' books, you must run Record Asset Units Used (tffam1145s000) prior to depreciation.
An asset can depreciate in a book only until its remaining cost is equal to its salvage value or until its remaining life is equal to zero. Assets with a negative cost accumulate negative depreciation and cannot depreciate past zero. When an asset reaches these limits, the asset and its related books stop depreciating.
Field Information
- Period
-
periods
Allowed values
Integers between 1 and n, where n is the number of periods in the calendar.
The period through which depreciation of an asset on its asset books will be calculated.
- Year
-
Year through which depreciation will be calculated.
- Suppress Journal Entries
-
If this check box is selected, journal entries are not created in the General Ledger module for this transaction.
- Print Error Report
-
If this check box is selected, an error report is printed.