Setting Up Depreciation

Use Settings > Accounting > Asset Management to establish enterprise-wide settings for the methods of depreciation that your enterprise uses.

Most setup steps for depreciation occur on the Methods tab. Deltek is set up to use the straight-line method of depreciation, but you can add any number of additional methods to reflect your enterprise's requirements.

After you configure depreciation, use the Equipment hub to:

• Assign employees to an asset item. (Optional)
• Review and enter depreciation or amortization classification information for an asset item.
• Enter other required information before the asset item can be depreciated or amortized. This includes changing the status of an asset item from Inactive to Active before you can process depreciation for it.

Then use the Asset Management application to:

• Process depreciation or amortization for an asset item.
• Transfer or split an asset item.
• Dispose of an asset item.
• Review historical and summary information for an asset item.

When you run depreciation processing:

• Depreciation and amortization are processed for the accounting period that you have open in Deltek at the time of processing.
• You can process depreciation and amortization for all asset items at once or select asset items individually.
• You process depreciation and amortization for your general ledger (GL book) and additional books separately.

  You create additional books if you need to calculate depreciation in additional ways from how you calculate it for your general ledger (for example, if you need to calculate depreciation for tax purposes).

• Deltek creates journal entries for depreciation and amortization for your GL Book, but not for additional books.
• If you have multiple companies, you run depreciation processing separately for each company.
• If you use multiple currencies, the journal entries for depreciation and amortization use a company's functional currency.

You can schedule depreciation processing to occur automatically at a future time. You can use the Undo Posting utility (Utilities > Advanced Utilities > Undo Posting) to undo deprecation postings.