Calculating depreciation at regular period closes

When you let the system calculate depreciation at the close of each period instead of adjusting it at the time the asset is added, the asset catch-up depreciation for the prior distribution period or periods is spread evenly over the remaining periods for the rest of the current year.

Set compute option to	N (No)
Journal entries 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 required	None
Comments	When you use the compute option of N (No) for assets with in-service dates from the prior period, the depreciation amounts shown for each period might not be the expected amounts. This is because depreciation must proceed at a higher amount per period than would otherwise be predicted to make the asset's basis depreciate to the end of its life.