Depreciation calculation at regular closing period
After you calculate the depreciation at the close of each period instead of adjusting, the asset catch-up depreciation is spread evenly over the remaining periods for the rest of the current year.
| Calculation | Description |
| Compute Option | Set to N |
| Journal entries that are generated at addition time |
Asset (debit) and Asset Clearing (credit) Note: Journal entries are generated only if you have assigned a posting book
to the asset.
|
| Result | The depreciation for the prior depreciation periods is fully recovered at the end of the current year. |
| Additional steps required | None. |
| Comments | After you use the compute option N (No) for assets with in-service dates from the prior period, the depreciation amounts that are displayed for each period may not be the expected amounts. This process is done because the depreciation must proceed at a higher amount per period than the prediction to create the asset's basis depreciate to the end of its life. |