Creating Depreciation Transactions

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Assets are normally depreciated in bulk as detailed in the Asset Bulk Depreciation Process section but it may be necessary to depreciate an individual  Asset before it is revalued, as detailed in the Revaluation section, or disposed, as detailed in the Disposal section.

Individual Assets can be depreciated via the AM Depreciation form, which can be accessed by clicking on the  button on the Main tab of the AM Asset Maintenance form, as detailed in the Amending Assets section.

Where the Status of the Asset is set to , clicking on the  button will allow you to create a new Depreciation transaction.

The AM Depreciation form will open:

The first few fields on the form will be populated from the Asset on the AM Asset Maintenance form where the  button was selected:

A unique transaction reference will need to be added to the Reference 1 field where these are not automatically generated.  Where these are generated automatically this field can be left blank.  Please note: this field may have a different label dependent on your configuration.

Click on the  button:

The following fields are displayed (mandatory fields are notated with a red asterisk *):

This amount will initially be the same as the amount on the Original Capital Cost field on the AM Asset Maintenance form for the Asset but will be changed where the Asset is revalued.  Revaluing Assets is further detailed in the Revaluation section.

This will be the date that the Asset was last depreciated up to (and including).  The Asset will be depreciated from the day after this date up to and including the date in the Depreciation Date field, detailed immediately above.

Where the date in the Depreciation Date field is after the date in the Depreciation End Date field, the Asset will be depreciated from the date after the date in the Last Depreciation Date field up to and including the date in the Depreciation End Date field.

Where there is no date on the Last Depreciation Date field on the Asset Book this field will be blank, in which case the Asset will be depreciated from the date in the Depreciation Start Date field up to and including the date in the Depreciation Date field.  Where the date in the Depreciation Date field is after the date in the Depreciation End Date field, the Asset will be depreciated from the date in the Depreciation Start Date field up to and including the date in the Depreciation End Date field.

This amount must be changed and must also be greater than the amount in the Last Number of Units field, as detailed immediately below.  For example if the Asset is a vehicle with a mileage of 500 when purchased (Starting Units) and an expected life of 200,000 miles (Estimated Life Units), when it is depreciated for the first time, 500 will be in the Last Number of Units field and the current mileage should be added to this field, e.g 1,500 miles.  Once depreciated the Last Number of Units field will contain 1,500.

Where the Last Number of Units field on the Asset Book is blank, this field will display the same amount as in the Number of Units field, as detailed above.

Depreciation will be calculated for the number of additional units between the amount in the Number of Units field, as detailed immediately above, and the amount in the Last Number of Units field.

Please note: the number of Children in this field will not include any Child Assets that have been Disposed or have been Cancelled.

Where this option is selected this Asset, i.e. the Parent Asset, will be depreciated.  This option can be deselected where only the Child Assets are to be depreciated - some of the fields and options detailed above will be used when processing Child Assets such as the GL Posting Date and Depreciation Date fields as well as the Trial Run option.

Please also note: Assets with a Depreciation Method specified on the Asset Book of Units of Use will not be able to include any Child Assets for depreciation.  The Depreciation Method can be found on the Grid at the bottom of the AM Asset Maintenance form of the Asset.

Please note: the number of Children in this field will not include any Child Assets that have been Disposed or have been Cancelled - only these Child Assets will be processed.  In addition Assets with a Depreciation Method specified on the Asset Book of Units of Use will not be able to include any Child Assets for depreciation.  The Depreciation Method can be found on the Grid at the bottom of the AM Asset Maintenance form of the Asset.

Where both the Parent and its Children are selected to be depreciated there will be the option to process any Child Asset that has a Status of  at the same time as the Parent is depreciated.

The buttons at the bottom of the form are as follows:

Where the Process Child option has been selected on the form, the Child Assets will be included in a Grid at the bottom of the form.

The same fields as detailed above will still be available and some can be changed, if required.

You will note that the Status of the transaction has now changed to  and that further buttons are now be available at the bottom of the form.

These are:

Where the Process Child option has been selected on the form ensure that the Process Child column in the Grid at the bottom of the form is also selected.

Where more than one Line is included in the Grid select this column for each Child that is to be depreciated.

Once the  button has been selected the form will change to a read only version of the AM Depreciation form where no further changes can be made and the Status of the Depreciation transaction will change to .  This form is further detailed in the AM Depreciation (Readonly) form section.