Calculate Depreciation
Several system and depreciation method-specific options affect the computation of depreciation.
You should make the decisions regarding the basic methodology used at your company and the system configuration(s) that support your company policies before you initialize Fixed Assets. Configuration changes made after initialization, although permitted by the system, should be made with caution to avoid unexpected results.
- Related Topics:
- Select System-Wide Method for Computing Depreciation
On the Configure Fixed Assets Settings screen, you can select one of two system-wide methods for computing depreciation "Catch-Up" amounts for prior periods missed in a current year (purchase year or fiscal year, as applicable). You can: - Use of Catch-Up System-Wide Configuration for Depr Calculations
On the Configure Fixed Assets Settings screen, you can specify whether the system should "catch up" the calculation of any delayed current year depreciation in the remaining periods of the purchase or fiscal year (as applicable with your depreciation methods) or in the current period. - Set Configuration for Computing Depreciation Based on Periods or Days for Date of Purchase Methods
On the Configure Fixed Assets Settings screen, you can select one of two system methods for computing current period depreciation. You can: - Set Up Fiscal Year-Period-Subperiod Data in Costpoint General Ledger and Fiscal Year-Accounting Period Data
Needs short description. - Assign Date of Purchase or Fiscal Year Basis to Each Depreciation Method
You must assign a Date of Purchase or Fiscal Year basis for each depreciation method that you set up. The basis that you select for the depreciation method determines the specific formula that will be used to compute depreciation. Note that different formulas may be used within the same asset record, because depreciation methods are assigned on a book-by-book basis for each asset record. - Other Factors that Can Affect Depreciation Calculations
- Current Depr Yr and Days/Pds Remaining Fields
These two important fields on the G/L Book Info tab (and the Other Books Info subtask, as applicable) of the Manage Asset Master Information screen (and on the Manage Asset General Ledger Book Information and Manage Asset Other Books Information screens) are used by the system during depreciation computations. - Compute/Update Depreciation Computation Data Utility
The Compute/Update Depreciation Computation Data utility was developed to assist you in verifying the relationship of the Depr Start Date field to the Current Depr Yr and Days/Pds Remaining fields. - Depreciation Calculation Example 1
Asset acquired at the beginning of the fiscal year using Fiscal Year basis. - Depreciation Calculation Example 2
Asset acquired in the middle of the fiscal year using Fiscal Year basis. - Depreciation Calculation Example 3
Asset acquired in middle of fiscal year using Fiscal Year basis. - Depreciation Calculation Example 4
Asset acquired at beginning of fiscal year using Fiscal Year basis. Record added in middle of FY with "Catch-up" spread over remaining periods. - Depreciation Calculation Example 5
Asset acquired at the beginning of the fiscal year using a Fiscal Year basis. Record was added in the middle of the fiscal year with "Catch-up" applied in current period. - Depreciation Calculation Example 6
Asset acquired in middle of purchase year (which falls in middle of fiscal year) using Date of Purchase basis. Date of Purchase method based on Periods. - Depreciation Calculation Example 7
Asset was acquired 10 periods into fiscal year using Date of Purchase basis. Date of Purchase method based on Periods. Asset was entered three periods "late" (after purchase) with "Catch-Up" depreciation applied in current period. - fax_Depreciation_Calculation_Example_8
Asset acquired at beginning of accounting period in middle of fiscal year using Date of Purchase basis. Date of Purchase method based on Days. - Depreciation Calculation Example 9
Asset acquired in middle of accounting period using Date of Purchase basis. Date of Purchase method based on Days. - Depreciation Calculation Example 10
Asset acquired in middle of accounting period using Date of Purchase basis. Record added several periods later, with "Catch-up" depreciation applied in the current accounting period. Date of Purchase method based on Days.
Parent Topic: Related Topics