About Depreciation Schedules

A depreciation schedule is a single amount by which an asset is to be depreciated by on a certain date. Depreciation schedules are created when you click Generate Depreciation Schedules on a fixed asset or a depreciation book. The depreciation schedule that is generated depends on the depreciation method and time period basis chosen on the depreciation book. Depreciation schedules are contained within depreciation books.

You can calculate depreciation schedules for all depreciation books on an asset or for a depreciation book to which an asset belongs. See Generating Depreciation Schedules for a Fixed Asset and Generating Depreciation Schedules for a Depreciation Book.

Note:

For record keeping and auditing reasons, if the depreciation schedule belongs to a tax, MACRS tax, or custom depreciation book, we recommend that you select the Active checkbox on each depreciation schedule that has been claimed for tax or included in an analysis report.

Once the Active checkbox is selected on a depreciation schedule associated with a tax, MACRS tax, or custom depreciation book, the status of that depreciation schedule is changed to Exported and the Accumulated Depreciation, Net Book Value, and Written Down Value calculations are updated. The messages to FFA are only sent if it’s an Accounting Book.

Warning:

If you change a depreciation book after generating depreciation schedules, its depreciation schedules might be inconsistent with the change or might be terminated as a result of the action. When this occurs, a message appears at the top of the Depreciation Book detail page indicating that the depreciation schedules for the book need to be regenerated. To correct this issue, click Generate Depreciation Schedule to regenerate the depreciation schedules.

Date in Service

The behavior described here applies to accounting, tax, and custom books. See About MACRS Depreciation for information that applies to MACRS tax books.

Accounting Books

When you calculate depreciation for an accounting book, this calculates the depreciation for the whole life for the asset. If the Date in Service of an asset is after the 14th of the month, a depreciation schedule is not created for the first month of that asset's life. In this case the effective date of the first depreciation schedule is the end of the following month. In this example depreciation schedules have been calculated for a 12 month period for an asset costing $1000. A salvage value of 0 and a Date in service of 01/15/2015 have been entered.

Schedule Effective Date Depreciation Amount
1 02/28/2015 83.33
2 03/31/2015 83.33
3 04/30/2015 83.33
4 05/31/2015 83.33
5 06/30/2015 83.33
6 07/31/2015 83.33
7 08/31/2015 83.33
8 09/30/2015 83.33
9 10/31/2015 83.33
10 11/30/2015 83.33
11 12/31/2015 83.33
12 01/31/2016 83.37

Tax and Custom Books

For tax and custom books, if the Date in Service of an asset is after the 14th of the month, you cannot claim depreciation for the first month of that asset's life. In our example depreciation schedules are to be calculated for a 12 month period for an asset costing $1000. A salvage value of 0 and a Date in service of 15/01/2015 have been entered.

In our example, if you calculate depreciation for a 12 Month duration of the asset's life, this results in 11 depreciation schedules:

Schedule Effective Date Depreciation Amount
1 02/28/2015 83.33
2 03/31/2015 83.33
3 04/30/2015 83.33
4 05/31/2015 83.33
5 06/30/2015 83.33
6 07/31/2015 83.33
7 08/31/2015 83.33
8 09/30/2015 83.33
9 10/31/2015 83.33
10 11/30/2015 83.33
11 12/31/2015 83.33

In our example, if you calculate depreciation for the remaining service life, this results in 12 depreciation schedules:

Schedule Effective Date Depreciation Amount
1 02/28/2015 83.33
2 03/31/2015 83.33
3 04/30/2015 83.33
4 05/31/2015 83.33
5 06/30/2015 83.33
6 07/31/2015 83.33
7 08/31/2015 83.33
8 09/30/2015 83.33
9 10/31/2015 83.33
10 11/30/2015 83.33
11 12/31/2015 83.33
12 01/31/2016 83.37