Asset Depreciation Processing – An overview
Introduction
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes.
The processing of depreciation for various financial periods across various depreciation books is handled by this component. All the active capital assets can be depreciated.
Feature Highlights
Depreciation is processed on the historical cost of assets and acquisition cost for an asset will be common across all depreciation books. Depreciation will be done at asset tag level.
Depreciation is always processed till the last date of the period/year selected for processing or system date whichever is earlier or up to a specified process date in the period. Depreciation can be reversed only for open financial period and can be re-processed if required.
Suspension period can be defined for assets (which are out of service) at the level where depreciation is processed. Depreciation will not be charged for the suspension period set.
Supports depreciation change with retrospective effect for any change in method or rate of depreciation previously charged.
Simulation of depreciation can be done for analysis purposes, for both existing as well as new Assets.
Implicit depreciation is calculated in the case of asset transfer or disposal and depreciation upto the date of transaction to arrive at the written down value.
List of Activities
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Go to Activity… |
For… |
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Process Depreciation |
To Process depreciation for the selected set of assets based on the depreciation setup and post financial entries for depreciation charged. |
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Simulate Depreciation |
To simulate depreciation for the existing asset or for the new asset proposals |
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Change Depreciation |
To change the depreciation processed in the case of any rate or method change. |
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Reverse Depreciation |
To reverse depreciation for the depreciation processed earlier |
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Close Depreciation Book |
To close depreciation book for open financial year |
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Create Depreciation Adjustment |
To create depreciation adjustment entries for assets. |
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Reverse Depreciation Adjustment |
To reverse depreciation adjustment already created |
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View Depreciation Adjustment |
To view depreciation adjustment |
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Confirm Usage & View Depreciation |
To confirm usage and view depreciation |