Depreciate or Amortize Assets

Depreciation is used to allocate the cost of fixed assets, such as machinery and equipment, over their depreciable life. For each fixed asset, you must define how it will be depreciated.

There are two ways to post depreciation:

• Manually, using the FA G/L journal or the FA journal.

• Automatically, by running the Calculate Depreciation batch job.

The program can calculate daily depreciation, thus allowing you to calculate depreciation for any period. You can therefore analyze current operating results on, for example, a monthly, quarterly, or annual basis.

The program uses a standard year of 360 days and a standard month of 30 days in the calculation.

Allocating Depreciation

If a fixed asset is used by several departments, periodic depreciation can be automatically allocated to these departments according to a user-defined allocation table.

Canceling Incorrect Entries

You can cancel incorrect depreciation entries. This can be done with the Cancel FA Ledger Entries batch job. After this, you can post the correct amount of depreciation by running the Calculate Depreciation batch job again.

When you correct errors, they are posted as FA error ledger entries.

Indexation

Indexation is used to adjust values for general price-level changes. The Index Fixed Assets batch job can be used to recalculate the depreciation amounts.

The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.

To	See
Run the Calculate Depreciation batch job.	How to: Calculate Depreciation Automatically
Post to a depreciation book for which depreciation does not have general ledger integration.	How to: Post Depreciation Manually by Using Fixed Asset Journals
Use the FA G/L journal to post depreciation when you are posting to a depreciation book for which depreciation has general ledger integration.	How to: Post Depreciation Manually by Using Fixed Asset General Ledger Journals
Fill in journal lines to be posted to a depreciation book, and then duplicate the lines in a separate journal, from which they can be posted to a different depreciation book.	How to: Post Entries to Different Depreciation Books
Copy entries from one depreciation book to another with the Copy Depreciation Book batch job.	How to: Copy Fixed Asset Ledger Entries
View, correct, and cancel FA ledger entries, cancel and recalculate depreciation, trace FA transactions, and view and print FA registers.	Maintain Fixed Asset Ledger Entries
See posted amounts per asset and depreciation book.	How to: View Accumulated Amounts for Each Posting Type
Print a report about depreciation, acquisitions, and disposals for a selected period, as well as book value at the end of the period	How to: Print Fixed Asset Book Values
Show amounts posted in the general ledger that are from the Fixed Assets application.	How to: Print Fixed Asset General Ledger Analysis Reports

See Also

Tasks

How to: View Fixed Asset Ledger Entires
How to: Cancel and Recalculate Depreciation

Concepts

Set Up Depreciation

Other Resources

Calculate Depreciation
Cancel FA Ledger Entries
Index Fixed Assets