Generating Depreciation Schedules for a Depreciation Book

To calculate depreciation:

  • The status of the asset associated with the depreciation book must be Approved or Active. If the status of the asset is Active, you cannot generate depreciation for accounting books if the depreciation schedules have been exported to a financial accounting system.
  • At least one depreciation book must be associated with the asset.
  • You can regenerate depreciation schedules for tax, MACRS tax, and custom depreciation books. Historic information relating to an asset cannot be changed.
  • You cannot generate depreciation schedules with gaps in the Effective Depreciation Dates. Depreciation for accounting books and MACRS tax books is calculated for the whole life of the asset.
  • If you regenerate depreciation for a tax, MACRS tax, or custom book and active depreciation schedules exist, which are later than the Period Start Date you enter, you must either enter a Period Start Date which is later than the active depreciation schedules of the book or clear the Active checkbox on each depreciation schedule that falls after the Period Start Date.

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.

To generate depreciation schedules for a depreciation book:

  1. Click the Depreciation Books tab.
  2. Select the Depreciation Book Name of the depreciation book that you want to calculate depreciation schedules for.
  3. Ensure that the Date In Service field on the asset contains a valid value.
  4. For depreciation books other than MACRS tax books, ensure that the Applied Depreciation Method related list contains the depreciation methods that you want to use to calculate depreciation. See Applying a Depreciation Method.
  5. Click Generate Depreciation Schedule.
  6. If the depreciation book is a tax or custom book, the Generate Depreciation for Period page appears. Do the following:

    Click the image to expand it.

    Screenshot showing the Generate Depreciation for Period page.

    1. In the Period Start Date field, enter the date on which depreciation is to be calculated from. You must enter a period start date that falls on or after the Date In Service, but before the end of the service life. There must not be any gaps in the depreciation schedules.
    2. Select the duration for which you want to calculate depreciation.
    3. Click Calculate.
  7. Review the proposed depreciation schedules:

    Click the image to expand it.

    Screenshot showing the Review Depreciation Book Schedules page.

    • Click Confirm to apply the proposed depreciation schedules.
    • To change the proposed depreciation schedules, click Back, make the changes you want on the depreciation book, and repeat the last two steps.
  • If there are existing depreciation schedules for the book, these are shown in the left-hand pane and the proposed depreciation schedules are shown in the right-hand pane. If there are no existing depreciation schedules for the book the proposed depreciation schedules are shown in the left-hand pane and the right-hand pane is not shown.
  • The number of depreciation schedules generated varies depending on the Date In Service of the asset, the type of depreciation book. See About Depreciation Schedules.