Running asset depreciation calculations

Run the Asset Depreciation Calculation program regularly to keep depreciation and written down values up to date. The Asset Depreciation Calculation program is normally run monthly, but can also be run at any time during the month as required.

Depreciation methods
The depreciation depends on the method applied to the asset based on its Asset Type Code:

Method	Depreciation calculation
Reducing	Depreciation = _{(Brought forward written down value x} _{Number of days from the last depreciation to the As At Date x} _{Depreciation rate of the asset) / (Number of days in year x 100)}
Fixed/Straight	Depreciation = _{(Original purchase cost x} _{Number of days from the last depreciation to the As At Date x} _{Depreciation rate of the asset) / (Number of days in year x 100)}

Running depreciation calculations at year end
When running the asset depreciation calculation at the end of the financial year, it will:

update the written down values for each of the assets
update the written down date
update the last depreciation date
clear the Depreciation Year-To-Date figure.

The new written down value is calculated using the previous value less depreciation for the prior year.

Opening the Asset Depreciation window

To open the Asset Depreciation window:

Select Module > General Ledger > Asset Depreciation Calculation from the main menu.
The Asset Depreciation window is displayed.
Tip: You can also access the Asset Depreciation function by clicking .

Note: Whether depreciation journals are automatically created or not depends on how Synergetic is configured. See Synergetic Financial Configuration - Assets tab in the Finance manual. If journals are automatically created, the Journals Summary Report is printed after the depreciation run. If the journals are not automatically created, you need to create them manually.

Asset Depreciation window key fields and buttons

Fields

Field

Description

As At Date

Date to calculate the posting depreciation.

The date cannot be:

earlier than the last depreciation date
more than one year after the last written down date.

A confirmation message is displayed if the date is later than today's date.

Note: If you select 31/12/yyyy, then the Also do End of Year update field is automatically selected. You can override the end of year update by clearing the field.

Also do End of Year update

Update the end of financial year asset depreciation.

This field can only be selected or cleared if the depreciation As At Date is set to the end of the current financial year. The field is greyed out for all other selected dates.

At the end of the financial year, our recommendation is to:

Clear the field before running the first depreciation calculation run.
Check the figures are correct after the depreciation calculation run.
Select the end of the current financial year as the As At Date.
Select the Also do End of Year update field.
Run the depreciation calculation again to update the Written Down Value of the assets (deducting the depreciation YTD from the existing WDV) as well as updating the Asset Written Down Value date in the global Finance Configuration area.

Posting Description

Description for the posting. This defaults to Asset Depreciation Calculation.

Buttons

Button

Description

View the report showing the details of a previous depreciation posting and print it, if required.

Abandon the posting.
This:

reverses any depreciation taken off the assets in the posting
resets the Depreciation YTD to the previous value
resets the Written Down Value to the previous value.