Depreciation for back-dated activities

For example, work orders are sometimes not closed until after depreciation has been calculated for the period in which the work was completed. Because depreciation has already been calculated, the back-dated capital expenditures are excluded from subsequent depreciation runs and will never be included in the valuation.

Similarly, you might want to add a revaluation for a period that has already been depreciated.

To calculate depreciations for back-dated activities you must complete these steps:

• Configure asset valuation books to allow depreciation of back-dated activities.
• Add formulas in the Workflow Manager to identify which back-dated activities require depreciation calculations.

To include back-dated activities, the system creates depreciation adjustments from the close date of the work order, or the date of the revaluation, up through the most recently depreciated period. The adjustments account for the difference in depreciation caused by the new back-dated activities.