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What Does This Procedure Do?
This procedure is where you calculate the scheduled depreciation and the residual values of objects in the fixed asset register. Calculations can be made for an optional period and for optional fixed asset groups or fixed asset objects.
Before the depreciation is executed, a ledger containing the fixed assets and their records is displayed. When depreciation is executed, an accounting order is automatically created and transferred into a voucher in the accounting. But the accounting order can also be printed and recorded manually, if desired.
The depreciation is performed according to the entered percentage for the current fixed asset group in the Register Fixed Asset Groups procedure.
The system will consider if a sale or retirement of assets has taken place. A calculation is made of the fixed asset's depreciation up to the sales date and a calculation of profit/loss is also performed. These events are recorded automatically in the system.
The ledger/accounting order that is created when calculating and also the accounts that are charged, are loaded from each fixed asset group. During sales it is also important that a transition account for sales of fixed assets is entered in the standard accounts list. This account is entered in the Chart of Accounts/Standard Accounts procedure.
The calculation of the scheduled depreciation can be based either on the acquisition value or the residual value. Calculation basis is selected with the setting Basis for scheduled depreciation under the Accounting tab in the Settings procedure in the Global Settings module.
The calculation of the depreciation is based on the number of days since the last depreciation. Regarding depreciation of new acquisitions of fixed assets, you have to enter in the system if the depreciation is to be calculated from the acquisition date or from the beginning of the fiscal year. This choice is made with the setting Starting date for depreciation of new acquisitions under the Accounting tab in the Settings procedure.
Window Functions
Read more about the Window functions under Window Functions in the MONITOR Basics guide.