Assets > Transaction Processing > Asset Depreciation Calculation

Asset Depreciation Calculation

You use this program to process the depreciation calculations for assets for the current period.

This program can be run as a report only as often as required.

Toolbar and menu

Field Description
Start Processing

Select this to generate the report according to your selections.

If you defined master and sub-assets (Asset Master Sub-assets) then the depreciation defined against sub-assets is shown separately and never rolled up to the respective master assets.

Depreciation is automatically calculated for all assets, asset groups, branches and locations for the selected depreciation book(s). No selection criteria are provided.

Refer to Depreciation Calculation for information on how depreciation is calculated.

Refer to Error Messages for information on possible errors encountered.
Print Select this to print the information currently displayed in the Report pane.
Save Form Values This option is only enabled in Design mode (Automation Design). Your selections are saved and applied when the program is run in automated mode.

Form values and defaults are applied at operator level. They are not saved at role or group level.

Information

Field Description
Current year This displays the current year your Asset module is in and cannot be changed.
Current period This displays the current period your Asset module is in and cannot be changed.
Last calculation This displays the period and year when the Asset Depreciation Calculation program was last run in Generate & update mode for Book value depreciation book.
Current period This displays the period end date for the current period your Asset module is in.
Processing options  
Generate only

Calculate the depreciation according to your selections and prints the report.

The assets master file is not updated and no General Ledger entries are created for Book value depreciation.

The program can be run in Generate only mode as often as required.
Generate & update

Calculates the depreciation for all assets, updates the assets master file and generates the report.

When you process the Book value depreciation book, the General Ledger distribution entries are created.

This option must only be selected for Book value depreciation after you have processed all your asset transactions for the month (i.e. additions, disposals, revaluations, etc).

You cannot revalue Book value depreciation for assets in the current period (Asset Revaluation) once you have run the Asset Depreciation Calculation program and selected the Generate & update option for Book value depreciation.

The program can only be run ONCE per period in Generate & update mode for Book value depreciation, and must be run before the month end or year end functions of the Asset Period End program can be selected.
Asset branches Indicate the asset branch(es) for which to generate the report.
Asset groups Indicate the asset group(s) for which to generate the report.
Asset codes Indicate the asset code(s) for which to generate the report.
Asset locations Indicate the asset location(s) for which to generate the report.
Include in processing  
Book value

Select this to process the selected function for the Book value depreciation book.

[Note]

You can only run the Asset Depreciation Calculation program once in Generate & update mode during a single period for the Book value depreciation book.

You must therefore only run the report in Generate & update mode for Book value depreciation after you have processed all your asset transactions for the month (i.e. acquisitions, disposals, revaluations, etc).
Tax value

Select this to process the selected function for the Tax value depreciation book.
Alternate value 1 - 10

Indicate the alternate valuation book(s) for which to process the selected function.

[Note]

The alternate depreciation values are only included in the report if you added and posted the cost values for each of the selected alternate valuations in the Asset Acquisition program.
After processing completed

These options are displayed within programs that can be automated. They enable you to indicate the action you want to perform once processing is complete (see Automation Design).

Report

The information in this pane is displayed once processing is complete, providing you did not select the option: After processing completed > Close this application.

If a red flag or a yellow triangle icon is displayed against a line in the report, then you can click on the icon to view the error message. See Error Messages.

You use the After processing completed options to print or email this information.

  • Current book value

    This is calculated as Asset Cost less Accumulated Depreciation (i.e. the total depreciation up to the end of the previous year).

Depreciation Calculation

Depreciation is calculated individually for each depreciation book based on all of the following:

  • the information currently held against each asset's depreciation book (Asset Acquisition).
  • the depreciation code defined against the asset (Asset Acquisition)

  • the depreciation Options on addition selected (Assets Register Setup).

  • the options indicated on the Basis for depreciation and Date conventions in the Assets Register Setup program.

    • When the depreciation basis is Period, only the current period's depreciation is calculated. You use the Asset Depreciation Calculation program to make changes to the depreciation.

      Book value depreciation is always calculated on the depreciation basis of Period.

    • When the depreciation basis is Year, the full current year's depreciation is recalculated from Period 1. Therefore, each time you run the depreciation calculation, all the entries starting from period 1are re-calculated (re-generated) and the period set to the last depreciation calculation run period. History and entries for the current year are deleted and re-created. This also applies to disposed assets, which are recalculated up to the point of disposal until the year end has been processed (Asset Period End).

      Depreciation is recalculated on the value and depreciation details of the assets at the time of calculation, even if an asset was acquired or disposed of during the year. The value used to recalculate depreciation if the Date convention is also Year is not the asset cost. The formula is:

      Opening asset value + this year's inter-company transfers in + this year's additions + this year's count movements + this year's value changes.

    • When the depreciation basis is Life of asset, depreciation is recalculated for the full life of the asset. All history and all entries are deleted and a history record is recreated. No entries are re-instated.

  • the Exclude residual from depreciation for options selected (Assets Setup).

    Where a Residual value is defined for an asset (Assets) the asset is always depreciated only until the book value residual amount entered is reached (i.e. the accumulated depreciation equals the difference between the cost/value and the residual value).

    If a Minimum value is defined against the asset group for an asset (Asset Groups) and the Minimum value is greater than the Residual value of the asset, then the asset is depreciated up to the Minimum value defined against the group and not the Residual value defined against the asset.

When the depreciation calculation is re-run for a period:

  • Depreciation is not recalculated for any depreciation book with a basis of Period. A warning message is displayed indicating that the depreciation has already been calculated. The depreciation values calculated on the first run of the program are displayed.

  • Depreciation is recalculated for books with a basis of Year and Life of asset.

If an asset still has a value after the remaining periods reach zero, the system continues to depreciate the asset. This means that any remaining value carries on depreciating in the following period(s).

Notes and warnings

Program access

  • Access to this program can be restricted per operator group (see Security Access).

  • Additional security can also be implemented in the following areas:

    • Functions/Activities can be restricted:

      • per operator (see Security Activities).

      • per operator role (see Role Activities and Fields Maintenance).

      • using Electronic Signatures (see eSignature Setup).

    • Fields can be restricted:

      • per operator (see Security Fields and Access).

      • per operator role (see Role Activities and Fields Maintenance and Role Access Control Maintenance).

Restrictions and limits

  • You need to run the Asset Depreciation Calculation program once at period end in Generate & update mode to update the assets master file and create the General Ledger distribution entries, before the Assets month end or year end can be run using the Asset Period End program.

    Running the report in Generate & update mode also recalculates the year to date depreciation value for each asset and updates the asset master file accordingly.

  • The depreciation basis for Book value depreciation is Period and cannot be changed.

    You must therefore ensure that you have processed all your asset transactions for the month (i.e. acquisitions, disposals, revaluations, etc) before running the report in Generate & update mode for Book value depreciation.

    If you re-run the calculation, the values are not recalculated or updated.

  • Although this program can be re-run in a single period for depreciation books set to Period, depreciation is only calculated the first time the Asset Depreciation Calculation is run in Generate & update mode.

    Thereafter, the initial values calculated are displayed when you re-run the depreciation calculation.

    This means that all books with a depreciation basis of Period must be included in the first run of the program in Generate & update mode. Thereafter any book with a depreciation basis of Period is not updated in the same period, even if it was not previously selected in the first Generate & update run of the program.

  • Asset branches, Asset groups, Asset codes and Asset locations selections are only enabled when running the Generate only function.

Error Messages

Error messages are printed on the report in the following cases:

  • If the Assets module is linked to the General Ledger (General Ledger Integration) and the integration level is set to Cost Center or Group, then error messages are printed on this report if either the Cost Center or the Group are not found.

    Additionally, if you selected to generate the report in update mode, then no entries are generated for distribution to the General Ledger.

  • If any capex requisition lines exist as assets in suspense (Assets in Suspense) and their depreciation start date is earlier than the current Assets period end date, an error message is displayed and the Asset Depreciation Calculation program is aborted.

    You will need to use the Assets in Suspense program to either transfer these assets in suspense into the Assets Register, or place them on hold.

  • The error message: "No statistical G/L History found" indicates that at least one assets is linked to a Statistical EUL depreciation code, which means depreciation is calculated on transactions posted on statistical General Ledger accounts. To generate history on these statistical General Ledger accounts, you need to post Statistical journals using GL Journal Entry program.

    Use the Assets program to locate the Statistical GL code linked to the asset. Use the GL Query program to query this statistical code. There MUST be transactions/history on this account and the account code must be defined as a Statistical account type, otherwise the program cannot calculate depreciation. If there are no detail transactions against the statistical account, then you need to post Statistical journals using the GL Journal Entry program.

GL Analysis considerations

  • If the GL analysis required option is enabled for a ledger account used in this program (General Ledger Codes or GL Structure Definition) then the Capture GL Analysis Entries program is displayed when you post the transaction, so that you can enter the analysis details. For a sub module transaction, the sub module must also be linked to the General Ledger in Detail at company level (General Ledger Integration) or at ledger account code level (General Ledger Codes or GL Structure Definition). GL analysis entries cannot be entered from sub modules if the sub module is linked to the General Ledger in Summary at company level or at ledger account code level.

    Note that the GL analysis required option is ignored for all GL codes which are defined in General Ledger Integration. This applies even when the GL code is manually entered in a posting program. Although GL integration programs may be entered manually, they may also be called automatically by other programs or may be automated, which means that they can never be stopped to allow GL analysis entries to be captured.

    If the GL analysis code used does not exist in the GenAnalysisCat table, then a message to this effect is displayed and the program will not prompt for analysis again. The GL journal will be created but not posted until the GL code, GL analysis code and GL journal are corrected.

    The Ask Me Later function is only available when the option: Force GL Analysis - GL journal posting is enabled for the sub-module (General Ledger Integration).

    General Ledger analysis entries are always distributed in the local currency, regardless of the currency in which the original transaction is processed.

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the eSignature Setup program.

eSignature Transaction Description
Asset Depreciation calculated

Controls access to the Generate & update processing function in the Asset Depreciation Calculation program.

Activity considerations

Operator access to the following activities within this program can be restricted. You configure this using the Operators program.

Activity Description
Assets Depreciation calculation update

Controls whether an operator can use the Asset Depreciation Calculation program to update the depreciation values for assets.

When denied, the operator can only calculate the depreciation and print the report.

Inserting Application Help

You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.

Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.

  1. Open the program for which you want to insert application help into a customized pane.

    This functionality is only available for a program that has panes.

  2. Right-click any form field.

    You can also click the triangle menu icon that appears in the title area of a pane.

  3. Select Insert Application Help from the context-sensitive menu.

    The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.

Removing the Application Help pane

If you no longer want to display application help in a pane for your current program, you can simply remove it.

  1. Select the Close icon in the right-hand corner of the application help pane.

  2. Confirm that you want to delete the pane.