Set Depreciation Books – A summary of the activity
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You can define a Depreciation book for tax purposes, management accounting purposes, or as a corporate book. Depreciation books are used to get different parallel depreciation for a single asset by applying different methods or rates. The organization may likely to follow different set of depreciation rules for the same assets for satisfying each of its stakeholders. You can also define a mandatory depreciation book that would be used for posting transactions to the Finance Book.
The system retrieves the already defined depreciation book on launch of the page. You can also modify the depreciation book details through this activity. You can also maintain the depreciation below book value in this activity. If any Book is shown to be Depreciated Below Book Value, These values may be shown as an expense In arriving at the profit or loss. The “Corporate” and the “Tax” book cannot be depreciated below book value. You can provide a unique code for the depreciation book and give a description to it. You can also specify the date from which the book is effective.
The system updates the status of the depreciation book to “Active” on creation. The system updates the login ID of the user to the created by and the system date to the created date. On modification, the system updates the login ID of the user to the last modified by and the system date to the last modified date.
What you can do in this activity
Define multiple depreciation books
Allow depreciation below book value
Define multiple depreciation books
This activity allows you to define multiple depreciation books to cater to different stakeholders. The books could be Corporate Accounts, Tax, Costing, and Management Reporting.
Go to “Set Depreciation Book” page.
Enter the unique code and provide a description to the book.
Specify the date from which the book is effective and create the book.
Allow depreciation below book value
The depreciation can be set to below the book value, which may be expensed with in the Statement of Profit or Loss for the period.
Go to “Set Depreciation Book” page.
Specify “Yes” in the depreciation below book value field.
The Corporate and the Tax books cannot have the depreciation below book value.