Inventory Control Menu -> Calculate Depreciation -> Calculate Alternate Depreciation -> Standard option -> Calculate Depreciation
This program can be used to calculate depreciation on the Fixed
Assets.
It impacts the standard depreciation only. It calculates the
depreciation amount, and stores the calculations in an Edit
file that can be reviewed and modified in Review Depreciation Calculations.
Each time the Depreciation Calculation is run, the previous
Edit file is discarded and is replaced by the new
calculations. This can be useful for testing the depreciation run
before the final posting run and updating the Fixed Asset Tags.
Note: To update the Alternative Book Value with depreciated amounts, use the Calculate Alternate Depreciation option.
Refer to the Depreciation Overview for details on both these features.
Depreciation should be run at month end or year end.
It must be run after Post A/P Invoices,
Daily Close 1, Daily
Close 2, Daily Close 3 and Allocate Bulk Disposals have been completed.
New contracts and Rental Returns must not be entered while the
Depreciation Run is in process, otherwise the location on the
equipment may change resulting in the depreciation being calculated
at the incorrect location.
For examples of how the depreciation is calculated, refer to Depreciation Methods and Depreciation Classes.
To ensure that all items have fixed asset tags, first run the
Verify Tag Qty = Loc Qty utility.
To check that all new equipment has been assigned the correct
Depreciation Class, run New Acquisitions
Report by Depreciation Class. This report can be run for a
selected date range.
e.g. Run it for the last month, to check all new equipment setup
since last month's depreciation run.
The prompts are:
Uncheck this box to select a single class or a range of Depreciation Classes.
Uncheck this box to select a single class or a range of Product Classes.
This feature only applies to non-bulk rental equipment belonging
to a Group that is set to Suspend Upon
Receipt.
The suspension period is based on the receipt date plus the Days
On Suspension After Product Received defined in the Company Inventory Parameters, or is terminated if
the equipment is rented.
Check this box to include "suspended" equipment in the
depreciation run.
The S column on the report by Depreciation or by Product
Class indicates the suspension status when printed from Print Depreciation Report.
Uncheck this box to omit "suspended" equipment from the depreciation run.
Note: This filter does not apply to the Calculate Alternate Depreciation option.
Note: This prompt does not apply to the Calculate Alternate Depreciation option as Alternate Depreciation is not posted to the G/L.
Note: This prompt does not apply to the Calculate Alternate Depreciation option as Alternate Depreciation is not posted to the G/L.
Note: The divisions included in the report output, are NOT limited to the Divisional Restricted Views assigned to the operator.
After correcting the errors on the Fixed Asset tags, re-run the Calculate Depreciation program.
Depreciation posted for the Straight Line method can be reversed using the Depreciation Reversal Utility.
Note: Depreciation amounts for the Declining Balance, Straight
Line, and Flat Rate methods, will be generated each time the
depreciation run is initiated.
Depreciation amounts for the MACRS method are NOT generated if the
equipment has already been depreciated to the current month.
Products flagged to not allow depreciation in Update Allow Rental / Depreciation Flag, will NOT
be depreciated.
ACTIONS:
Additional actions provided by buttons on
the Calculate Depreciation screen include:
Review Processed Depreciation Calculation Records:
Click the HISTORY button to view Depreciation records
that have already been processed as outlined in Review Depreciation History.
Print and Post the Depreciation Information:
Click the REPORT/POST button to generate the report,
as outlined in Print Depreciation
Report.
A printer can be confirmed or re-selected from the Printer option
located on the menu bar at the top of the screen.
When the report is accepted the depreciation values are updated in the Inventory sub-ledger.
Posting Control
The Depreciation programs are designed to be run by one
operator at a time per batch.
If a second operator tries to process depreciation, a warning will
appear on the screen preventing the second user from proceeding.
The conflict in posting is controlled by the Posting Control flag,
which is set internally when the first operator initiated the
depreciation process.
If for some reason, such as improper software shutdown, the first operator has not exited the Depreciation process properly to release the program, then the Posting Control flag will not be reset automatically to allow the next person to run depreciation. The operator will not be able to proceed until the flag is reset.
The operator will only be able to reset this flag if he has
permission to reset the Depreciation posting flag as
controlled by his Security Role that is
defined in Operators.
Whenever the posting control flag for is reset, a record is written
to the Delete Log for the Function
RSAD.
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