Generating Depreciation Schedules for a Fixed Asset

To calculate depreciation:

  • The status of the asset 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.

Depreciation and Dates

The depreciation schedule dates are based on the Date in Service, not the Date Acquired.

If the date in service is earlier or equal to the day in the middle of the month, then the depreciation schedules generated include the month that the asset went into service. For example, if the date in service is February 1-14, then February is included in the depreciation schedules.

However, if the date in service is after the middle of the month, then the first depreciation schedule is the month after the date in service month. For example, if the date in service is February 15-28, then the first depreciation month is March.

Generating Depreciation Schedules from a Fixed Asset

To generate the depreciation schedules for all the depreciation books associated with a fixed asset:

  1. Display the fixed asset that you want to generate the depreciation schedules for.
  2. Complete these fields on the Fixed Asset Detail page if you have not already done so:
    • Asset Cost
    • Date Acquired
    • Date in Service
    • Business Use Percent (required for MACRS tax)
  3. If the asset does not contain any depreciation books, create the depreciation books you want. See Creating Depreciation Books.
  4. Click Generate Depreciation Schedule.
  5. If the asset contains a tax or custom book, an additional page appears:

    Click the image to expand it.

    Screenshot showing the Generate Depreciation 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 Generate.
    4. Click Return.

This generates depreciation schedules for all depreciation books. For an accounting book and MACRS tax books, depreciation is always calculated for the whole life of the asset. For tax and custom books, depreciation schedules are only generated for the generation period that you choose.

Once you generate the depreciation schedules for an asset its status becomes Active. Once a depreciation schedule on an accounting book is exported to an accounting system, you can no longer regenerate depreciation for that depreciation book.