Running the depreciation calculation

Depreciation Calculation calculates and posts depreciation for a range of asset codes. It does so for all of the periods between the last time depreciation was calculated and the selected period.

Each asset record contains the following details which are used by the Depreciation Calculation as the basis for the calculations:

• The depreciation method
• The gross value of the asset, calculated from transactions
• The accumulated depreciation, calculated from transactions
• The net value of the asset, the difference between the gross value and accumulated depreciation
• The final value of the asset, which can either be deducted before depreciation is calculated, or can be a value below which depreciation is not calculated.

Additionally, the depreciation cost can be spread according to the timing rules code defined in Depreciation Timing Rules, or apportioned across different analysis codes according to the preset posting analysis details, or both. For example, a timing rule could be defined if you have 13 accounting periods in a financial year but you only want to calculate depreciation for the 12 operational periods because the final thirteenth period is used for holding year end adjustments.