Running the advanced depreciation calculation

Note:  Before calculating the advanced depreciation, you must use Asset Advanced Depreciation Selection (FDA) for all the assets to be included in the calculation, to check or uncheck their Apply Current Year check boxes depending on their Apply From and Term of Years settings in Asset Records (FAS). Advanced depreciation is not calculated in the current year for assets that have been processed with Asset Reduction Depreciation Calculation (FAR), nor for assets that have their Apply Current Year check box unchecked.

From SunSystems select Asset Advanced Depreciation Calculation (FAA) to calculate advanced depreciation at year-end, after all ordinary depreciation methods have been posted. The advanced depreciation is posted to the same periods as ordinary depreciation, and therefore may be 'back-posted' to periods throughout the year. By setting the Post Transactions option to No on the Advanced Depreciation Calculation form, you can run advanced depreciation calculations without posting to the ledger. You can view the calculation results report, and try different scenarios to help you decide whether to include a group of assets or not for the definitive calculation.

Advanced depreciation, also sometimes called 'anticipated depreciation', is the multiplication of the ordinary depreciation amount by a factor during the first few years of the asset life. Both the multiplication factor and the term in years for which advanced depreciation applies are defined on each asset record using Asset Records (FAS).

  1. Open Asset Advanced Depreciation Calculation (FAA).
  2. Specify this information:
    Asset Class From/To
    The asset class, or the range of asset classes, to be processed. Leave this blank either to select all assets, or if you want to select specific asset codes in the field below.
    Asset Code From/To
    The asset code, or range of asset codes, to be depreciated. Leave these fields blank to select all assets.
    Analysis Dimension
    The asset analysis dimension to be used to select assets. Leave this blank to select all assets, regardless of the analysis dimensions.
    Analysis Code From/To
    If an Analysis Dimension has been chosen as the selection criterion above, this analysis code or range of codes is used to select the assets. Only assets that reference one of these codes in the chosen analysis dimension are selected for advanced depreciation.
    Depreciation Period
    Enter the last period of the current year.
    Post Transactions
    If you wish to report on the advanced depreciation calculations without posting them, select No. Select Yes to calculate and post the advanced depreciation. If provisional postings are mandatory or optional, you can select Post Provisional to post the transactions as provisional transactions. An advanced depreciation report is always produced.
    Posting Period
    Select Single to post all of the advanced depreciation calculated to the period specified in the Depreciation Period field. Select Historic to post the advanced depreciation calculated to the period to which it relates.
    Suppress Transactions
    Select Yes if you only want to print the asset transactions generated during this run. Select No if all of the asset transactions are to be printed, including any previous depreciation, asset and disposal transactions.
    Balance Sheet
    The balance sheet advanced depreciation account to which the advanced depreciation is posted. Normally, advanced depreciation is posted to the Advanced Deprctn Acnt Bal Sheet identified on the asset record in Asset Records. If this account is blank in Asset Records, then the account entered in this field is used.
    Note:  SunSystems does not check that the account entered is a Balance Sheet type account.
    Profit and Loss
    The profit and loss advanced depreciation account to which the advanced depreciation is posted. Normally, advanced depreciation is posted to the Advanced Deprctn Acnt P&L identified on the asset record in Asset Records. If this account is blank in Asset Records, then the account entered in this field is used.
    Note:  SunSystems does not check that the account entered is a Profit and Loss type account.
    Consolidate Profit and Loss
    Normally two postings are generated for each asset's advanced depreciation calculation: one to the balance sheet advanced depreciation account and the other to a profit and loss advanced depreciation expense account. If this field is set to Yes, then you can specify how you want to consolidate the profit and loss postings.
  3. Save your changes.