Calculate Depreciation
Depreciation is the amount charged against an organization’s earnings to recognize the cost of an asset over its estimated useful life, giving consideration to wear and tear, obsolescence, and salvage value. Depreciation is calculated on assets for a certain period of time to reflect their decreased value.
Tip: From Fixed assets, Assets, when you select Calculate depreciation, all assets are calculated. To calculate depreciation for only one asset, open the individual asset and select More, Calculate depreciation from the action bar. Review more details about straight-line depreciation conventions and how to calculate straight-line depreciation.
From the Assets list page, select Calculate depreciation on the action bar.
Enter the date for the depreciation period you want to calculate.
Select Period start date or Period end date to determine the date assigned to generated depreciation transactions.
In the Post status field, select Not yet posted to generate an unposted batch to post later, or Do not post to generate transactions without posting them.
For Not yet posted, set the ledger posting date separately from the transaction date.
Note: Under Excluded assets, Fully depreciated and disposed assets and Do not depreciate are always excluded and can't be cleared.
Next, add filter assets, such as classes and locations, before calculating depreciation.
We recommend running the Pre-calculate report before calculating.
The report previews depreciation amounts and highlights any exceptions, helping you identify and address issues before generating depreciation transactions.
Select Calculate depreciation.
This process calculates depreciation and creates depreciation transactions for the selected period. When the process is complete, a summary report displays the calculated transactions and any exceptions.