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 the Calculate Depreciation page.
- The Calculate Depreciation process is a single batch process, meaning you can process only one batch at a time.
- If there is an open batch in the Calculate Depreciation process, you will not be able to create a new batch. If you would like to create a new batch, you can either delete the existing batch by clicking the Delete icon on the batch tile, or you can reset the steps in the batch by returning to the first step of the process. All of the information in the batch will be overwritten. For example, if the Proof List has already been generated for the depreciation in the batch, returning to the Calculate Depreciation step and entering new data will reset the steps on the process.
- If there are no open batches in the process and you would like to create a new batch, click the Create New Batch button. This will open the New Batch view. The batch number, batch month, and batch year of the batch are for reference purposes only.
2 Open the Batch Overview page.
- The Batch Overview page provides a general overview of the selected batch.
- The left navigation menu displays all the steps in the Calculate Depreciation process.
- In the main section you'll see information about batch steps that are currently processing, next available batch steps, and the last completed batch step.
- Batch steps that are currently processing will display a blue indicator bar to alert you that the step has not yet completed.
- Once the preceding batch step is complete, the next available batch steps will be enabled and you can select the next step you would like to run.
- While some batch steps are optional, any batch step that includes the Required tag must be completed before the batch is allowed to proceed through to the Commit step.
- The Batch Outputs section on the right will display any reports or exports that have already been generated in the Calculate Depreciation process.
3 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. Enter a transaction date in the Transaction Date field.
- 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 Submit button to generate the batch immediately or click the Schedule button to schedule the batch to generate at a later time.
- You can view the progress of the batch on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
4 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.
5 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.
- Once the required report settings have been specified, click the Print button to print your report.
- Click the options arrow on the right side of the Print button to see other print options.
- Select PDF to print the report in the default Springbrook format.
- Select Excel to export the report data to an Excel spreadsheet as unformatted data.
- 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.
- Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
- Enter a Date and Time to generate the report and click SUBMIT.
6 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.
- Once the required report settings have been specified, click the Print button to print your report.
- Click the options arrow on the right side of the Print button to see other print options.
- Select PDF to print the report in the default Springbrook format.
- Select Excel to export the report data to an Excel spreadsheet as unformatted data.
- 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.
- Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
- Enter a Date and Time to generate the report and click SUBMIT.
7 Commit the depreciation batch.
- Open the Commit Calculate Depreciation screen (FA> Calculate Depreciation> Commit).
- Click the Continue button or press ENTER to commit the batch.
- If you click the Cancel button, you can still commit the batch via the Commit button.