Parameters Affecting Asset Depreciation
Operational Parameter 112 'Depreciation Basis'
- Accounting - Use the start date of the asset to determine the starting date to depreciate from.
- Tax - Use purchase date of the asset to determine the starting date to depreciate from.
Operational Parameter 113 'Depreciation Law'
Applies to the first years depreciation of the asset and has two settings
- European - The first year is pro-rata calculation. The purchase date and the number of days into the financial year is used to determine the amount to calculate.
- In this scenario, an asset purchased 11 months into the financial year is subject to depreciation for the 12th month only.
- US - The date of purchase is not used, instead 50% of the usual yearly depreciation is applied.
- In this scenario, an asset purchased 11 months into the financial year is still subject to 50% depreciation for that financial year.
Note:
- When depreciating a sold item, the 'Depreciate to or end of year date' will be the disposal date if the disposal date is earlier than the end of year date
- End of year date will default to +1 year from the last depreciation run
- Depreciation report now includes report options to select either all the assets for display or only those depreciated in the current run
Manually Depreciate Assets
- From Inventory Setup, edit the Asset Record-->Financial Details Tab
- Click the button to show calculated depreciation against the asset.
3. Use these values to manually update the asset record
- a - Use this value to update 'Depreciated to' date
- b - Use this value to update 'Depreciated Year to date' and 'Accumulated Depreciation' figures
- c - Use this value to update the 'Residual Value' of the asset
Depreciation Forecast / Depreciate Assets in Bulk
Please take a backup of your database before using this option since Bulk asset depreciation is NOT reversible. It is also advisable to execute a Test Run which will show a depreciation forecast without updating the database.
Report options do NOT affect depreciation; they are simply used to select what assets you would like to see on your report. See next section for breakdown of report options.
From the main menu click Assets-->Perform Depreciation
'Yes - It's a test run' - to forecast depreciation with NO database update
'update asset register' to depreciate assets (ensure you have a backup of the database as this option is not reversible)
