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Assets - Depreciation Tab

Access this tab using Maintain>Fixed Assets>Assets.

Use this tab to set up depreciation information for the selected asset. For Cost or Basis, enter the price you paid for an asset or the fair market value of an asset donated to your organization. Enter additional depreciation information, such as Salvage Value, Begin Depreciation Date, Life, Last Depreciation Date, Accumulated Depreciation Amount, and Months Depreciated.

Note: When the Zero Book Value check box is selected on the Asset Tab, the fields on this tab become display only and all information which had been previously entered is cleared.

When setting up or importing assets, verify that the Accumulated Depreciation Amount and Months Depreciated are correct before transferring to your general ledger (Activities>Fixed Assets>Transfer Depreciation/Disposals). If you have not already done so, you need to make a journal voucher entry (Transactions>Enter Journal Vouchers) to record the cost and accumulated depreciation amounts. For more information, see Entering Journal Vouchers .

Cost Information: Enter the appropriate cost information for the asset.

  • Cost or Basis: Enter the cost or basis of the asset. (You cannot enter a negative amount.) This is the value at the time you received the asset.
  • Salvage Value: Enter the salvage value of the asset. This amount is the expected value when the asset is disposed at the end of its useful life.
  • Amount to Depreciate: The system displays the amount to depreciate. This amount is the total of the Cost/Basis minus the Salvage Value.
  • Begin Depreciation Date: Enter the date to begin calculating depreciation. This should be the date the first depreciation was or will be calculated after the asset was acquired. This date must be the same as or prior to the Last Depreciation Date.

    Refer to the following notes when entering a Begin Depreciation Date and a Last Depreciation Date:

    • When you enter a Begin Depreciation Date, the entire month is depreciated, regardless of the date you enter. You can enter a date of 3/1/15, 3/24/15, or any other day in March, and the system depreciates the entire month of March. In this example, months are based on calendar months.
    • If you enter a date other than month end for your Fiscal Year-End date (when you created your organization), the calculation is treated differently. For example, you entered 12/15/15 as your Fiscal Year-End date in the system. The system depreciates the months as follows: 12/16-1/15, 1/16-2/15, 2/16-3/15, and so on.
    • When you enter a Begin Depreciation Date, the indicated month is included in its depreciation calculation. If you enter 2/22/15 as your Begin Depreciation Date, the system includes the depreciation for the date range of 2/16-3/15, in its calculation.
    • If you enter a Last Depreciation Date of 10/31 and the Fiscal Year-End date in the system is 6/30, the system assumes you have included the depreciation for 10/31 through 11/30; it begins calculating depreciation for 12/1 through 12/30. If 2/28 or 2/29 is entered, the system begins calculating depreciation for 3/1 through 3/30.
  • See the "Tips" section below for more information.
  • Life (Months): Enter the life of the asset. This number must be entered in months, not years.

Historical Information: Once you transfer the depreciation for the selected asset using the Activities>Fixed Assets>Transfer Depreciation/Disposals form, the historical information is disabled.

  • Last Depreciation Date: Enter the date when this asset was last depreciated. This date must be the same as or after the Begin Depreciation Date.

    Refer to the following notes when entering a Begin Depreciation Date and a Last Depreciation Date:

    • When you enter a Begin Depreciation Date, the entire month is depreciated, regardless of the date you enter. You can enter a date of 3/1/15, 3/24/15, or any other day in March, and the system depreciates the entire month of March. In this example, months are based on calendar months.
    • If you enter a date other than month end for your Fiscal Year-End date (when you created your organization), the calculation is treated differently. For example, you entered 12/15/15 as your Fiscal Year-End date in the system. The system depreciates the months as follows: 12/16-1/15, 1/16-2/15, 2/16-3/15, and so on.
    • When you enter a Begin Depreciation Date, the indicated month is included in its depreciation calculation. If you enter 2/22/15 as your Begin Depreciation Date, the system includes the depreciation for the date range of 2/16-3/15, in its calculation.
    • If you enter a Last Depreciation Date of 10/31 and the Fiscal Year-End date in the system is 6/30, the system assumes you have included the depreciation for 10/31 through 11/30; it begins calculating depreciation for 12/1 through 12/30. If 2/28 or 2/29 is entered, the system begins calculating depreciation for 3/1 through 3/30.
  • Accumulated Depreciation Amount: Enter the current depreciation amount for the asset. This amount is the accumulated depreciation since the asset was acquired.
  • Months Depreciated: Enter the months that have already been depreciated since the asset was acquired.

  • To print the data entered on this form use Reports>Fixed Assets>Assets List.
  • When you close a fiscal year (Activities>Close Fiscal Year), you will not be able to depreciate assets (Activities>Fixed Assets>Calculate Depreciation) that have a Last Depreciation Date within that fiscal year. Furthermore, if the asset has a Status of Discontinue/Disposed, it cannot be changed after the year is closed.
  • If you need to add Basis to an Active asset that is fully depreciated, you will need to create a new asset if the Last Depreciation Date for the asset is in a closed year. Depreciation cannot be transferred to a closed year (Activities>Fixed Assets>Transfer Depreciation/Disposals).
  • When you transfer the depreciation (Activities>Fixed Assets>Transfer Depreciation/Disposals), the Last Depreciation Date, Accumulated Depreciation, and Months Depreciated are updated. Thereafter, you cannot make changes to the data in these boxes after they are transferred for the first time.
  • If you entered assets using the Transactions>Enter Cash Disbursements or Enter A/P Invoices>Asset Quick Entry form, or Activities>Purchase Orders>Create/Modify Purchase Orders>Asset Quick Entry form, the system automatically displays the Cost and Life (if enabled by the Administrator on the Organization>Set Up Modules>Fixed Assets form).
  • When an asset depreciates to a zero book value, you must change the status for the asset to D (Discontinued/Disposed) using Maintain>Fixed Assets>Assets. Assets that have a zero book value are not available to calculate (Activities>Fixed Assets>Calculate Depreciation) or dispose (Activities>Fixed Assets>Enter Disposals).
  • If an asset is fully depreciated, all fields are still available for editing and tracking purposes except the Historical Information.
  • The historical information is updated from transfer depreciation, but is not updated with current calculated depreciation.