Several documents update depreciation as part of normal processing. The system also provides a document specifically designed to allow manual depreciation updates. In addition, a batch process may be used to update depreciation balances throughout the system.
The specific Document Codes that update depreciation as part of normal processing include:
FD (Disposition)
FT (Transfer)**
FS (Internal Sale)
**NOTE: The FT only updates depreciation when the Depreciation Structure Indicator is set to Responsibility Center (R).
When documents update depreciation, the update is calculated as of the document date of record, or Disposition Date, in the case of the Disposition (FD) document. If the user leaves the document Date of Record blank, the date defaults to the current system date and depreciation is updated accordingly. The depreciation batch process updates depreciation through a user-defined Depreciation End Date, a required batch process parameter.
In addition, the Fixed Asset Depreciation Expense (FE) document may be used to manually update depreciation. This is typically used for assets where the Depreciation method has been set to "Manually Computed" (MC), but the document may also be used to adjust the accumulated depreciation balance of assets with other depreciation methods provided an override is applied.
The final way to update depreciation involves running the Fixed Asset Mass Depreciation offline process. This process provides the ability to update depreciate for all system assets at regularly scheduled intervals (typically monthly, quarterly, or on an annual basis). See the Record Mass Depreciation section for more details.
This section documents the general steps followed to manually update depreciation for an individual asset.
Using the Document Catalog, create a new Fixed Asset Depreciation Expense (FE) document by entering the FE document code, a Document Department, Document Unit (optional), and Document ID. Result: A blank document opens.
In the General Information subsection, use the Fixed Asset Number field’s pick list to select the asset number to apply depreciation updates. Result: The system fills in the document header with the available information associated with the selected asset from the Fixed Asset Registry (FAR).
Select Auto Apply to infer the component and accounting lines associated with the selected Fixed Asset Number.
If the asset’s Composite Indicator check box is selected, you must specify the depreciation updates in the document Header section. If this Composite Indicator is not selected, you may specify depreciation updates for individual Component Lines. (See the Record Composite Assets section for more details about composite assets.)
NOTE: If the asset is not a composite asset, you may still enter a depreciation amount on the document header. In this case, the system automatically allocates the depreciation to the asset’s component and accounting lines based on net book value.
When you’ve finished making changes, validate and submit this document.
The accounting event type associated with the FE document code causes certain updates to take place when the document is finalized. The following Event Type FA03 - Depreciate Fixed Asset is available. Depreciation updates are applied to the following tables and journals:
Fixed Asset Registry (FAR)
Fixed Asset Component Journal (JFACJ)
Fixed Asset Accounting Journal (JFAAJ)
General Accounting Journal (JACTG)
Balance Sheet Account Balance (BBAL)