Depreciation Processing
Use Depreciation Processing in the Asset Management application to process depreciation and amortization for asset items in the Equipment hub.
In addition to depreciating asset items, you can amortize them if they are capital leases or prepaid items, such as prepaid insurance. You normally process depreciation and amortization on a monthly basis.
When you run depreciation processing in
in the desktop application:- The Use Files to Group Transactions option in determines how journal entries are posted. Select Yes to group your entries in batches. Select No to post journal entry files individually.
- Depreciation and amortization are processed for the accounting period that you have open at the time of processing.
- You can process depreciation and amortization for all asset items or for one or more asset items that you select 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 differently from how you calculate it for your general ledger, such as for tax purposes.
- Journal entries for depreciation and amortization are created for your GL Book. No journal entries are created for additional books.
- If you have multiple companies, you run depreciation processing separately for each company. Depreciation processing is performed for the active company that you select when you log in.
- If you use multiple currencies, the journal entries for the depreciation and amortization posting use a company's functional currency.
You can schedule depreciation processing to occur automatically at a future time. You can use the Undo Posting advanced utility to undo depreciation postings.
- Related Topics:
- How Depreciation or Amortization Is Calculated When You Run Depreciation Processing
When you run Depreciation Processing in the Asset Management application, the depreciation or amortization calculation for each asset item is based on the information that is entered for the asset item in the Equipment hub. - Rerunning Depreciation Processing
After you run depreciation for an asset item, if you change any information on the GL Cost, GL Book, or Additional Books tab in the Equipment hub that affects the depreciation calculation, you can rerun depreciation. - Journal Entries Created During Depreciation Processing
When you run depreciation processing in the Asset Management application for your GL book, journal entries are created for posting depreciation and/or amortization to your general ledger. Journal entries are not created when you run depreciation for additional books. - Amortizing Capital Leases
You can set up asset items in the Equipment hub for capital leases that will be amortized when you run Depreciation Processing in the Asset Management application. - Amortization Example for Leased Assets
This example shows the entries that you make in Vantagepoint for a capital lease that will be amortized. - Amortizing Prepaid Items
You can enter asset items for prepaid items, such as general liability insurance, that will be amortized when you run Depreciation Processing in the Asset Management application. - Amortization Example for Prepaid Items
You can enter asset items in Vantagepoint for prepaid items, such as general liability insurance, that will be amortized when you run Depreciation Processing in the Asset Management application. - Changing How Depreciation Is Calculated After You Have Processed Depreciation
After you run Depreciation Processing for an asset item, you may need to change or correct how depreciation has been calculated for it. - Processing Depreciation in a Prior Period
You can rerun depreciation processing in a prior period, if necessary. - Undoing the Posting of a Depreciation Processing Run
If needed, you can undo the posting of a depreciation processing run for your GL book or any additional books.
Parent Topic: Asset Management