Summary

The Calculate Depreciation process is used to calculate depreciation on active, installed fixed assets. Depreciation is calculated based on the install date, so assets cannot be depreciated until they have been installed (Assets are installed in FA> Install Assets).

The general ledger entry from the Calculate Depreciation process will be a debit to the Depreciation Expense account type and a credit to Accumulated Depreciation.

Step by Step

1     Open or create a Depreciation batch.

• Select the Calculate Depreciation palette in FA> Calculate Depreciation. This will expand the Calculate Depreciation palette and display the steps of the Calculate Depreciation process.
• Modify an existing batch or create a new Calculate Depreciation batch.
  • Select a batch number from the drop-down menu at the top of the Calculate Depreciation palette to select an existing batch.
  • Select New from the Calculate Depreciation batch number drop-down menu to create a new batch. This will open the New Batch window.
    • The Batch Month and Batch Year of the Calculate Depreciation batch is used for reference only and is not necessarily the fiscal month and year the transactions in the batch will be posted to.
• Click the Generate icon to save the batch.

2     Select the asset to depreciate.

• Once you have selected or created a batch, click Calculate Depreciation to open the Calculate Depreciation window (FA> Calculate Depreciation> Calculate Depreciation).
• In the Selection drop-down menu, select All, Yearly, Half Year, Monthly, Unit Based or Single to filter the assets you will choose from.
  • The depreciation designation is determined on the Fixed Asset Maintenance window (FA> Maintenance> Fixed Asset> General tab> Depreciation Method field). 
• In the Options drop-down menu, select Standard or Exact.
  • The Exact option will allow yearly, half yearly and monthly depreciated assets to be calculated by an exact date for use with disposals. Only the Tran Date field will be active. Enter a transaction date in the Tran Date field or select one by clicking the drop-down menu.
• Click the Asset field label to select the asset to depreciate if you have chosen Single Asset from the Selection drop-down menu.
• To depreciate assets with an original cost of a set dollar amount, enter the value in the Meets/Exceeds field.
  • For example, if you want to depreciate assets with an original value equal to or greater than $5,000.00, enter 5,000.00 in the Meets or Exceeds field.
• Click the Confirm icon to commit the batch immediately or enter a date and time in the field next to the Confirm icon to schedule the batch to commit at a later time.
  • You can view the progress of the batch on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).

3     Test for depreciation batch exceptions.

• Open the Exceptions window (FA> Calculate Depreciation> Exceptions).
• The Exceptions window will display any exceptions that resulted from the batch generate step.
• If the generate step did not produce any exceptions, an information window will appear.

4     Print the Calculate Depreciation Proof List.

• Open the Proof List window (FA> Calculate Depreciation> Proof List).
• The proof list will display, in detail, the amount calculated for each asset.
• In the description column, the actual mathematical formula will display for each asset. The system calculates depreciation from the install date to the date selected in the Calculate Depreciation step.
• The application will validate that the accumulated depreciation is equivalent to the depreciation table. Validation includes: original cost, salvage value, life, install date and life used.
• Click the Print icon   to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report).

5     Print the GL Distribution.

• Open the Print GL Distribution window (FA> Calculate Depreciation> GL Distribution).
• Select the Journal Entry Date from the drop-down menu.
  • This will auto populate the dates that appear in the Fiscal Period and Fiscal Year fields.
  • The Journal Entry Date will also determine the fiscal period and year the depreciation entry is recorded in the general ledger.
  • Usually this date will correspond to the date that the depreciation was calculated through.
• Select either Summary or Detail from the Report Type drop-down menu.
• Check the Subtotal by Department toggle if desired.
• Click the Print icon   to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report). 

6     Commit the depreciation batch.