Depreciation Charge - Fixed assets

Depreciation Charge calculates and posts depreciation for your fixed assets for a period. You pick a depreciation set and a date range, and the system works out the depreciation for every asset. When you post it, it books the journal entry and updates each asset's book value.

When to use it

At period or year end, to record depreciation on your fixed assets.

Before you start

Your fixed assets are entered, with cost, salvage value and purchase date.
Each fixed-asset group has its Depreciation Expense and Accumulated Depreciation ledgers set.
A depreciation set exists (for example "Accounting Standard" for book, "Income Tax" for tax), with rates per asset group.

Where to find it

ERP > Fixed Assets > Depreciation Charge.

The fields on this screen

Section	Field (on screen)	What to enter	Required
Charge	Depreciation Set	The depreciation rules to apply. They decide which assets are charged and at what rate.	Yes
Charge	Period From	First day of the period being charged, in BS.	Yes
Charge	Period To	Last day of the period being charged, in BS.	Yes
Charge	Charge Date	Date the depreciation entry is posted to your books.	Yes
Charge	Fiscal Year	The fiscal year this depreciation run belongs to, such as 2081/82.	No
Charge	Voucher No	Numbered automatically when you save. Leave it blank unless you need to set the number yourself.	No
Charge	Total Depreciation	Total of the depreciation on all the lines below. It is worked out for you.	No
Charge	Narration	Short note on why this entry was made. It shows on reports and makes the entry easy to find later.	No
Charge	Basis	Comes from the set you picked. A book run posts a journal voucher; a tax run is for reporting only.	No
Lines	Asset	The asset this line depreciates. The run adds one line per asset, so you rarely need to change it.	No
Lines	Group	The asset group this line follows. The group decides the rate and the accounts this charge posts to.	No
Lines	Opening NBV	Book value this line starts from, before the period's depreciation is taken off.	No
Lines	Method	Straight line charges on cost less salvage; written down value charges on the falling book value.	No
Lines	Rate %	Yearly percent used on this line. It comes from the depreciation set, or from the asset if the set has none.	No
Lines	Period Frac	How much of a year this period covers. 1 is a full year; a part period or a mid-period purchase gives less.	No
Lines	Depreciation	Depreciation charged on this asset for the period. It never takes book value below the salvage value.	No
Lines	Closing NBV	Book value after this charge. It becomes the opening value for the next run on this asset.	No
Lines	Exp Ledger	The expense account this depreciation is charged to. It comes from the asset group.	No
Lines	Accum Ledger	The accumulated depreciation account this asset builds up in. It comes from the asset group.	No
Lines	Cost Center	Branch, project or department this asset's depreciation is charged to.	No
Lines	Group Id	The asset group this line was rated under, the same group shown beside it.	No

How it works

Pick the Depreciation Set and the period. The lines fill in automatically, one row per asset with its depreciation worked out, and the total updates.
Save the charge. It is numbered (DEP-...).
Post it. For a book set, this posts the journal (Dr Depreciation Expense / Cr Accumulated Depreciation) and updates each asset's book value. A tax set is calculated for reference only and does not post a journal.

Worked example

Run yearly depreciation on the Accounting Standard set:

Depreciation Set = Accounting Standard, Period From/To = the year, Charge Date = year-end. The lines fill in, showing every asset with its depreciation. Save. It is numbered DEP-000002.
Post. The journal is booked and asset book values are updated.

Tips and common mistakes

Set the group ledgers first. If an asset group has no Depreciation Expense or Accumulated Depreciation ledger, its assets produce no journal lines.
Book and tax work differently. Only book-basis runs post a journal; tax-basis runs are for the tax schedule.
Do not run the same period twice for a set. Each run depreciates from where the last one left off.

Fixed Asset Register (the assets), Depreciation Set / Rate setup, Trial Balance & Balance Sheet (where the posted depreciation shows).