Calculating Asset Depreciation

You can calculate asset depreciation for year-end.

Calculating depreciation deducts the cost of using an asset over the life of the asset. As the asset ages, it loses value. To reflect the decline in value, the asset depreciates over a period of months or years, depending on the life of the asset. You can calculate depreciation on a monthly or yearly basis, and you can include inactive items when you calculate.

Use Enter/Post Depreciation to calculate depreciation for your fixed assets and post the depreciation expense to the general ledger. You can print a depreciation journal to verify the depreciation calculated. The depreciation journal can also be used as an audit record.

When calculating depreciation, ACS compares the depreciation date to the acquisition date unless you select to Disregard Acquire Date. If less than one year has passed since the asset was acquired, ACS divides the yearly amount by 12 and then multiplies by the number of months in service. The result is the correct depreciation amount for the first year.

If a Depreciable Basis is entered for the asset, it is used to calculate depreciation. Items are depreciated up to salvage value unless you enter a retire date.

  1. Under Manage Records, click the Transactions tab.
  2. Select Fixed Assets Depreciation in the drop-down list, and click Go .
  3. Click Calculate Depreciation.
  4. Enter the effective date of the depreciation. Click the Down Arrow to select a date in the calendar.
  5. If you want to depreciate items that are no longer active, select the check box for Depreciate Inactive Items.
  6. Select to calculate depreciation either monthly or yearly.
  7. Click Begin.
  8. Once depreciation is calculated, click OK.