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This page allows you to process depreciation for a single asset or assets in batches. Tell me more.
Select the “Process Depreciation” link under the “Asset Depreciation Processing” business component.
The “Process Depreciation” page appears.
The system displays the following fields:
Process Run No. |
A unique number identifying the depreciation process run. This number is automatically generated by the system at the time of processing. |
Status |
The status of the asset and tag combination. The various status available are:
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Enter the following fields:
Depreciation Book Code |
Use the drop-down list box to select the code identifying the depreciation book. The system lists all the depreciation books defined in the “Set Depreciation Book” activity of “Asset Depreciation Setup” business component. The system displays “Corporate” by default on launch of the page. |
Process Date |
The date on which the depreciation process has run. |
Note: If the process date is specified and the depreciation book selected is “Corporate” or “Tax”, then the date must lie in the open or provisionally closed financial period.
Finance Book |
Use the drop-down list box to select the code identifying the finance book in which the accounting entries are to be posted. The system lists all the finance book mapped to the login organization unit 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. |
Note: If the depreciation book selected is other than “Corporate” or “Tax”, then the finance book must be left blank.
Numbering Type |
Use the drop-down list box to select the numbering type for the login organization unit. The numbering types must have already been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component and must be in “Active” status as on the Transaction date. The system displays the numbering type set as default for the transaction in the “Document Numbering Class” business component. |
Note: The system retrieves the revalued assets whose statuses are “Unprocessed” and “Partially Confirmed”.
Posting Cost Center |
The code identifying the cost center in which the accounting entries must be posted (Alphanumeric, 10). |
The system displays the following field:
Currency |
The base currency of the login organization unit. |
Enter the following field in the “Financial Calendar Information” group box:
Financial Period Upto |
Use the drop-down list box to select the financial period till which the depreciation must be processed. The system lists all the open or the provisionally closed financial period mapped to the login organization unit including the current period in descending order. The system displays the earliest open financial period by default on launch of the page. |
The system displays the following fields:
Start Date |
The start date of the first financial period available in the “Financial Period Upto” field. |
End Date |
The end date of the selected financial period. The system displays the end date of the period, which is defaulted in the financial period field. |
Enter the following field:
Process Upto Date |
The date till which you want the depreciation to be processed for the assets (Date Format). Note:
Ensure that the date specified in this field must be on or before the system date falling within the current open financial year. |
Note: Partial processing of depreciation can be done for current financial period only if the “Allow depreciation before period or year end” parameter has been set to “Yes” in the “Set Function Defaults” activity of the “Asset Depreciation Setup” business component.
If Process Upto Date is specified, then processing will be done upto this date.
Enter the following fields in the “Assets Selection” group box to select the assets for processing:
Selection Basis |
Use the drop-down list box to select the basis on which you want to retrieve the assets for processing the depreciation. The various options available are:
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The system displays “Asset Class” by default on launch of the page.
Asset Class Code |
Use the drop-down list box to select the code identifying the asset class. The system lists the asset class code 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. Ensure that “All” is specified in this field if the “Balance of Assets” is selected as the “Selection Basis”. |
The system retrieves the assets mapped to the asset class on the process end date specified for processing.
Depreciation Category |
Use the drop-down list box to select the code identifying the depreciation category. The system lists all the depreciation category assigned for the asset class code. The system leaves the field blank by default on launch of the page. Ensure the following:
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Note: The assets must be assigned to the depreciation category before processing.
The system retrieves all the assets, which are in “Unprocessed” or in “Partially Confirmed” status, mapped to the category for processing.
Asset No. |
The number identifying the asset (Alphanumeric, 18). The asset number must have been defined in the “Create Simple Asset” activity of the “Asset Capitalization” business component and a valid asset number for the specified “Finance Book”. This field is mandatory if the “Asset No.” is selected in the “Basis” field. Ensure the following:
Help facility available. |
Note: The asset number must not be entered, if the “Basis” selected is “Depreciation Category”, “Asset Class” or “Balance of Assets”.
Note: The system does not consider values specified in the “Asset Class Code”, “Asset No” and “Cost Center” fields if they are in contradiction to the value selected in the “Selection Basis” drop-down list box.
Cost Center |
The code identifying the cost center (Alphanumeric, 10). The cost center must have been defined in the “Create Cost Center/Unit” activity of the “Cost Setup” business component. This field is mandatory if “Cost Center” is selected in the “Basis” field. The system retrieves all the assets that are mapped to the cost center specified for depreciation processing. Ensure the following:
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Analysis # |
The code identifying the Analysis # (Alphanumeric, 5). The Analysis # must have been defined in the “Create Analysis Code” activity of the “Account Based Budget” business component. This field is mandatory if “Analysis Code” is selected in the “Basis” field. The system retrieves all the assets that are mapped to the Analysis Code specified for depreciation processing. Ensure the following:
The Analysis Code must be mapped to the relevant depreciation account code. |
Sub Analysis # |
The sub analysis code that is mapped to the Asset specified for depreciation processing from the asset record. The System retrieves all the assets that are mapped to the Sub Analysis Code specified for Depreciation Processing. |
Note: All the asset tags under the asset specified must be in “Unprocessed” or in “Partially Confirmed” status. Only those tags will be picked for processing depreciation.
Click
the “View Statistics” pushbutton to view the total number assets and tags
selected for processing.
Note: When any of the “Asset Selection” criteria is modified, ensure that you select the “View Statistics” pushbutton before selecting the “Process” pushbutton.
The system displays the following fields in the “View Statistics” group box:
Asset Selection |
The number of assets selected for depreciation processing. |
Records Selected |
The total number of capitalization documents that would undergo depreciation processing. |
Tags Selected |
The number of asset tags selected for depreciation processing. |
Click the “Process” pushbutton to run the depreciation processing for assets.
The system ensures that the flying hour of the asset is recorded before processing the depreciation, if the usage “Capitalized Maintenance Expenses” is mapped to the asset in the “Account Rule Definition” business component.
The system retrieves the depreciation rule set for an asset in the “Asset Depreciation Setup” business component and process the depreciation based on the rule.
The system updates the depreciation processing status for asset/tag/in-service combination to “Processed” on successful processing.
The system updates the period start date and the end date as the depreciation start date and the end date.
The system updates the depreciation processing status as “Processed” if the process end date is a depreciation period end date, else the system updates the processing status as “Partially Processed”.
If the depreciation convention is “Prorate”, “Mid Year”, “Mid Period”, or “User Defined”, the system considers the depreciation processing start date as
the in-service date, if the in-service date is greater than the period start date.
the revaluation date, if the revaluation date is greater than the period start date.
The system calculates the processing period as (processing end date – processing start date + 1).
Note: The value in the “View Statistics” group box must be available.
The number of records must not exceed the batch size defined in the “OU Process Parameter” activity.
If the “Include Revaluation” has been checked, then the revaluation depreciation processing must be in “Unprocessed” or in “Partially Processed” status. The assets must be in “Unprocessed” or in “Partially Processed” status before processing.
If the “Allows Depreciation below Book Value” parameter is set “Yes”, then the asset tag cost must not exceed the cumulative depreciation.
If multiple financial periods are selected, then processing will be done for each financial period sequentially.
If the in-service date or the revaluation run date is greater than the period end date, then those assets are not taken up for processing.
If the depreciation is processed for the first time, and if the asset tag associated to depreciation rule has a minimum asset value specified in the “Depreciation Charged Off Upto” field as defined in the “Create Depreciation Setup” activity of the “Asset Depreciation Setup” business component, the system performs the following:
considers the depreciation cost as the asset tag cost, if the asset tag cost is less than the value specified in the “Depreciation Charged Off Upto” field.
executes 100% depreciation , if the depreciation processed is same as the cost of the asset tag.
The effective and the expiry date of yearly rates
The system determines the effective and the expiry date of the yearly rates.
If the depreciation method is SYD and the convention is Prorate, then the effective date for the first year rate would be the In-service date of the asset tag.
If the depreciation convention is mid year then the effective date of the first year rate would be the mid-year date of the year in which In-service date lies.
If Depreciation convention is Mid-period, effective date for the first year rate would be mid period date of in-service date period.
The expiry date would be effective date + 365 or 360 days.
If suspension has been defined for the asset/tag, the expiry dates are extended by (suspension end date – suspension start date) + 1 days, for the years that have suspension start date greater than the year effective date.
If the depreciation convention is “Full Period”, the effective date for the first depreciation for an asset tag combination would be the starting date of the financial period in which the In-service date lies, and the expiry date would be the effective date + 365 or 360 days.
Note: The system considers the expiry date of the previous year as the effective date for the subsequent years.
Rate for diminishing balance method
If the method selected is diminishing balance method and the useful life is retrieved from the rule. The system calculates the rate for the asset/tag/In service date as 1 – (salvage/cost)^(1/useful life).
Partially confirmed start date
If the depreciation asset status is “Partially Confirmed”, then the depreciation processing start date for the asset/tag/in-service would be a day added to the process upto date.
Mid period convention
If the convention is mid period and the in-service date falls within the start and end date of the period, then the mid period date is calculated as (Period End date - Period Start date + 1)/2 + Period Start Date). The system updates the depreciation start date as the mid period date. In case of revaluation depreciation processing, in service date will be replaced by Revaluation run date.
Mid month convention
If the convention is mid month and the in-service date of the asset falls on or before the 15th of the depreciation processing period, then the depreciation will be charged on the asset for a full period. The system does not calculate any depreciation if the in-service date of the asset falls after the 15th of the depreciation processing period.
User-defined convention
If the convention is user-defined, then the effective date is calculated based on the following formula = (Year End date - Year Start date + 1)* First Year convention %age + Year Start Date.
Calculation of depreciation
The system calculates the depreciation for each asset/tag and in service date as (Rate * Period * Cost * Business use %age) / 360. The system retrieves the rates if defined under the rate ID with the effective and the expiry date.
The system calculates the depreciation for assets of usage “Capitalized Maintenance Expenses” based on the following formula:
Capitalized Maintenance Expenses (Original Balance) * Actual Flying Hours/Maintenance Interval.
The system calculates the suspension depreciation if the suspension period has been set for an asset.
The system calculates the maximum and minimum depreciation for the period, if the maximum and minimum depreciation has been defined in the rule. If the processed depreciation is greater than the maximum depreciation for the specified period then the assets depreciated reaches till the maximum depreciation. If the processed depreciation is lesser than the minimum depreciation for period, minimum depreciation is charged for the asset.
The system calculates the maximum depreciation for the period based on the following formula:
Maximum Depreciation * Depreciation Processing Period / 360 or 365 or 366 days
Note: If the “Allows Depreciation below Book Value” parameter set is not “Yes”, and the asset tag cost exceeds the cumulative depreciation, then that asset /tag cost and in service date combination must be ignored for processing
The system calculated the depreciation for assets for which rate is not provided based on the following formula:
Cost of the asset * Period * Business use % / Useful Life of the Asset / 360 (based on function default) or 365 or 366 if the year is leap year.
The system generates the process run number based on the numbering type.
The system posts all the accounting entries in the books of accounts on processing. The system retrieves the earliest open financial period and posts the depreciation charges for both “Corporate” and “Tax” depreciation book.
100% depreciation write-off – Cap. Document Level
The system charges the entire tag cost as depreciation against cap. documents if:
The “Depreciation Charged off upto” field in the “Create Depreciation Setup” of the “Asset Depreciation Setup” business component is applicable.
The tag cost is less than the value set for “depreciation charged off upto”
Note: The system does not take into account the salvage value
100% depreciation write off – Asset Tag – Period Level
The system charges the entire tag cost as depreciation against cap. documents if:
The parameter is set as “Asset Tag – 1st Period Level”
The net tag cost is less than the value set for “depreciation charged off upto”.
Note: The system does not take into account the salvage value
This is the depreciation for the period in which the respective in-service dates of the cap. documents.
To proceed, carry out the following
Select the “View Process Status” link at the bottom of the page to view the data in error log table.
Select the “Confirm/Delete Process Run” link at the bottom of the page to confirm or delete the process run.
Select the “Assign Asset” link at the bottom of the page to assign assets to the depreciation category.
Select the “View Depreciation” link at the bottom of the page view depreciation details of an asset.
Select the “View Suspension” link at the bottom of the page to view the suspension period of an asset.
Select the “View Rules” link at the bottom of the page to view the depreciation rules before running the depreciation process.
Select the “Set Suspension” link at the bottom of the page to set suspension period for an asset.
Select the “View Unprocessed Details” link at the bottom of the page to view the assets that are not processed.
Select the “View Revalued Depreciation” link at the bottom of the page to view the revalued depreciation.
Select the “Accounting Information” link at the bottom of the page to view the accounting information.
Select the “Function Defaults” link at the bottom of the page view the function defaults.
Processing depreciation – An overview
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You can select the code identifying the depreciation book in which the entries have to be posted, the date on which the depreciation has to be processed, the numbering pattern based on which the process run number is generated, the code identifying the finance book and the code identifying the cost center. You can also process depreciation for the revalued cost of an asset. This page allows you to process depreciation for a certain period.
If depreciation is to be processed partially then a process upto date has to be specified. You can process depreciation for all the assets belonging to the asset class, depreciation category, the cost center and remaining assets that are not processed. This page also allows you to process depreciation for a single asset. The system displays the total assets selected and the total asset tags selected for processing. The system updates the status of asset/tags as “Processing”.
The assets must have been assigned to the depreciation category.
The numbering class must have been defined in the “Document Numbering Class” business component.
The depreciation book must have been defined in the“Asset Depreciation Setup” business component.
The finance book must have been defined in the “Organization Set Up” business component.
Financial calendar must have been defined in the “Accounting Setup” business component.
The asset class must have been defined in the “Asset Type Definition” business component.
Retrieve assets for processing
Include revaluation for processing
You can also include cost of the asset after revaluation for depreciation processing.
Check the “Include Revaluation” check box for processing.
Retrieve assets for processing
The assets can be retrieved based on the following options.
Set “Asset Class” in the “Basis” field to pick up all the assets in the asset class for processing.
Set “Depreciation Category” in “Basis” field to retrieve all the assets belonging to the depreciation category.
Set “Cost Center” in “Basis” field to retrieve all the assets belonging to the cost center for processing.
Set “Asset No.” in “Basis” field to process the single asset.
Set “Balance of Assets” in “Basis” field to process the assets that are not processed.
You can view the assets selected for processing after specifying information in the “Assets Selected” group box.
Click the “View Statistics” pushbutton to view the number of assets, number of tags and number of records selected for depreciation processing.
