Asset Depreciation Run

This function executes the depreciation and tax depreciation of assets in real or simulation mode.

Successful and unsuccessful results can be viewed in user specified files. If not in simulation mode, the journals can be viewed in the Account Budgets Actuals function.

The Division and/or Cost Centre Manager can also budget for depreciation using the Account Budgets Actuals function, provided there are associated accounts for the Depreciation Account Codes. The approved depreciation budgets can be updated if the division settings Approved Budget Current Year Update By and Approved Budget Future Year Update By allows it.

The latest budgets are not bound by any settings. Asset depreciation runs can be run for future periods in simulation mode only.

Straight Line and Reducing Balance Models will use physical calendar days to calculate the depreciation amount. Scheduled Depreciation Models will use full calendar months.

On this tab the following fields can be viewed:

All the depreciation results are recorded in the file specified in this field when the Run button is executed. The user can change the filename in this field by clicking the browser [...] button.

When the browser [...] button is clicked, a dialog box is displayed containing file names for selection. When a file name is selected it is automatically inserted into this field.

When the user clicks the View button, the file specified in the All Results To field can be viewed in Notepad.

This field limits the depreciation run to Assets belonging to the selected Asset Group. When left blank, the depreciation run will be executed for all Asset Groups.

The asset group of the selected asset is obtained from the Asset Master table (optional). Assets are linked to asset groups on the Asset Group function. The asset group can be defined on the Asset Group screen.

It is populated with the asset number and description from the Asset Master table.When left blank, the depreciation run will be executed for all Asset Numbers.

This is the financial period for which the depreciation will be processed. If the period is in the past - ensure that the journal source setting for Assets is open for this selected period before you run the depreciation.

This list box displays the results of the asset run, namely the Asset Number, Depreciation Account, Accumulated Depreciation Account, Depreciation Amount, Tax Depreciation Amount and Comments.

Click on any header on the list box to sort the list by that heading. If you do this for the Comment header, you can quickly see all unsuccessful records.

Results can be displayed in an Excel spreadsheet or text file.

If Results to Text in the Run Options is selected, the Text Results Options become available where the user can specify the destination for all results and the unsuccessful results to be saved.

Status

The status of assets to be depreciated can be selected to be included/excluded. Status options are:

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Active

•	Inactive Depreciable

•	Held for Sale

•	Inactive Non Depreciable

A system configuration setting; “Asset Status Change Enforce Depreciation” exist, with this set on the system will force depreciation to run when an asset status are changed from a depreciable status (A,E) to a non-depreciable status (I,H). This depreciation will automatically run when the change is done - and if the setting is on. Please note that if the above system configuration setting was off, the user still need to run the depreciation for the inactive asset manually.

This is the only depreciation that will be allowed for the Inactive and Held for Sale Assets, which is once off run and otherwise no depreciation will normally be run for assets with a status of Inactive (Non Depreciable) or Held for Sale.

Run

When the Run button is clicked, all the assets for the company are depreciated according to the asset depreciation record (from the Asset Depreciation table) for the selected financial period, Asset Group specified/all Asset Groups (if left blank) and/or Asset Number specified/all Asset Numbers (if left blank). See the Asset Information function.

The Initial Allowance is only taken into account during the first depreciation run. For tax depreciation purposes, the Salvage and Initial Allowance values are not taken into account.

The asset depreciation will always leave a residual amount of at least one base currency unit. For tax depreciation purposes, the asset is depreciated until it has a book value of zero.

Run Options

The following run options exists:

•	Simulation run: When checked, journals or Asset Financial History records are not created. The depreciation values are only calculated and displayed. When unchecked, journals and Asset Financial History records are created for all assets that qualify.

•	Exclude zero book value: If checked then the asset selection will exclude Assets with a zero book value

•

Book value adjustments: If checked then an Asset depreciation run can be run for assets where a take on value correction was done - and the depreciation still nee to be run to do the book value adjustment and run the outstanding depreciation up to date. This run will ensure that depreciation will be in line with what it should have been, if the take on value was correct from the acquisition date. The adjustment will be added to the current depreciation amount - and the book value will be corrected. If the depreciation is not yet run for these assets - then the book value will appear incorrect and the rule : Cost ( Take on value) = Book value + Total Depreciation will not be true.

•	Output results to file: When checked the depreciation results will be displayed in a file. The kind of file depends on the Output Mode setting.

All the unsuccessful depreciation results are recorded to the file specified in this field when the Run button is clicked.

The user can change the filename in this field by clicking the browser [...] button. When the browser [...] button is clicked, a dialog box is displayed containing file names for selection. When a file name is selected, it is automatically inserted into this field.

When the user clicks the View button, the file specified in the Unsuccessful Results To field can be viewed in Notepad.