Creating depreciation adjustment

This page allows you to create the depreciation adjustment. Tell me more.

Select the “Create Depreciation Adjustment” link under the “Asset Depreciation Processing”.

The “Create Depreciation Adjustment” page appears.

The system displays the following fields:

Document No.	The number identifying the depreciation adjustment document. This number is generated during creating the adjustment.
Document Status	The status of the document. The status would become “Active” once the document number is generated.

Enter the following fields:

Depreciation Book Code	Use the drop-down list box to select the code identifying the depreciation book. All the depreciation book defined in the “Set Depreciation Book” activity of the “Asset Depreciation Setup” business component. The system displays “Corporate” by default on launch of the page.
Transaction Date	The date on which the depreciation adjustment documents were generated (Date Format). Mandatory. This date must be the date earlier than the in service date of the selected asset or asset tags.

Note: The depreciation must not be in “Processing” status for an asset, for the period in which the transaction date exists. The depreciation adjustment cannot be made for the same period.

Finance Book	Use the drop-down list box to select the code identifying the finance book in which the entries are to be posted. The system lists all the finance book mapped to the login organization unit of the Financial Book Processing business component to which this component is mapped for selection. The finance book must have been defined in the “Create Finance Book” activity of the “Organization Set Up” business component. The system displays the first finance book by default on launch of the page.
Numbering Type	Use the drop-down list box to select the numbering pattern. All the numbering type of transaction type “Depreciation Adjustment” are listed by the system for selection. Numbering type must have been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component.
Posting Cost Center	The code identifying the cost center in which the entries are to be posted (Alphanumeric, 10). The cost center must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component.
Posting Analysis #	The code identifying the analysis number in which the entries are to be posted (Alphanumeric, 10).
Posting Subanalysis #	The code identifying the sub analysis number in which the entries are to be posted.

Enter the following fields in the “Search Criteria” group box:

Asset Class Code	Use the drop-down list box to select the code identifying the asset class. All the asset class defined in the “Create Asset Class” activity of the “Asset Type Definition” business component. The system displays “All” by default on launch of the page.
Depreciation Category	Use the drop-down list box to select the depreciation category. All the depreciation category defined for the selected asset class will be listed for selection. The system leaves the field blank by default on launch of the page.
Cost Center	The code identifying the cost center in which the asset entries are posted (Alphanumeric, 10). The cost center must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component.
Asset No.	The number identifying the asset (Alphanumeric, 18). The assets must have been defined in the “Create Simple Asset” activity of the “Asset Capitalization” business component.
	Help facility available.
Tag No.	The number identifying the asset tags (Alphanumeric, 18).
	Help facility available.

Click the “Get Details” pushbutton to retrieve the asset information in the multiline.

The system displays the following fields in the “Asset Information” multiline:

Asset No.	The number identifying the asset.
Tag No.	The number identifying the asset tag.

Enter the following fields:

Dr / Cr	Use the drop-down list box to select the identifier. The options available are debit and credit. The system displays “DR” by default on launch of the page. See example
Depreciation Charge	The depreciation charge that has to either debited or credited (Decimal). Mandatory.
CME Depreciation Charge	The depreciation charge for the Capital Maintenance Expenditure portion.

Note: The depreciation charge for the asset / tag will be greater than the opening cumulative depreciation for the credit identifier.

Remarks

Any comments pertaining to booking the depreciation charge (Alphanumeric, 100).

Enter the following fields below the multiline:

Remarks

Any remarks pertaining to raising the depreciation adjustment (Alphanumeric, 100).

Click the “Compute Totals” pushbutton to compute depreciation total.

Note: Atleast one depreciation charge or CME depreciation charge must been entered in the multiline for the selected records.

The system displays the following field:

Depreciation Total

The depreciation total is incremented with all the depreciation charge amounts entered with debit and decremented by all depreciation charge amounts entered with credit.

Computation. Depreciation Total = All depreciation charges with Debit – All depreciation charges with Credit.

CME Depreciation Total

The CME depreciation total is incremented with all the depreciation charge amounts entered with debit and decremented by all depreciation charge amounts entered with credit.

Computation CME Depreciation Total = All depreciation charges with Debit – All depreciation charges with Credit

Check the box in the “Select” column of the multiline to mark the asset information.
Click the “Create” pushbutton to create the depreciation adjustment.

Note: Atleast one row in the multiline must be marked for creation.

If the “Allow Depreciation below Book Value” parameter has been set to “No” in the “Asset Depreciation Setup” business component and it is the debit identifier, the depreciation charge entered for the Asset/Tag including the opening cumulative depreciation must not exceed the Asset Tag cost less salvage value.

The system retrieves the account code from the “Account Rule Definition” business component for the usage “Depreciation” and “Cumulative Depreciation”.

The system computes the depreciation total. The system generates a unique document number based on the numbering type selected. The system updates the status of the adjustment document to “Active”. The system posts the accounting entry in the depreciation book and the posting cost center. The system updates the status of the asset/tag number, depreciation book and the financial period to “Processed”.

Processes depreciation adjustment for the selected asset or CME asset only for a period which is after the transaction date.

Ensures that the depreciation / CME depreciation charge entered for the Asset / Tag including the Cumulative depreciation / CME Cumulative depreciation does not exceed the Asset cost (ie Asset Tag cost - Salvage value) if the column “Depreciation below book value” is set as 'No' in the “Asset Depreciation Setup” activity of the current business component.

To proceed, carry out the following

Select the “Accounting Information” link at the bottom of the page to view the accounting information.

Creating depreciation adjustment – An overview

You can specify the code identifying the depreciation book in which the adjustment entry has to be posted, the code identifying the finance book in which the entries are to be posted and the posting cost center. You can retrieve the assets by carrying out the search using the code identifying the asset class, the depreciation category, the cost center and the code identifying the asset and the asset tag. The system retrieves the asset information based on the search criteria. You can record the depreciation charge either as a debit or a credit.