Asset Depreciation

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Asset Depreciation

Depreciation Setup

Fixed Asset Connect allows users to define and configure different depreciation methods, conventions, posting frequency, and company’s books.

  1. Books
    • Internal Book
    • Tax Book
  2. Depreciation Methods
    • Straight Line
    • Double Declining Balance (150 and 200)
    • Units of Production
    • Sum of the Year’s Digits
    • Custom Rates
  3. Depreciation Conventions
    • Full Month
    • Mid Month
    • Next Month
    • Full Quarter
    • Mid Quarter
    • Full Year
    • Mid Year
  4. Posting Frequencies
    • Monthly
    • Quarterly
    • Yearly

 

Depreciation Process

Once user has set up and register a new fixed asset, Fixed Asset Connect will automatically run depreciation calculation process in the server. User will be able to see depreciation journal entries from “Asset History” page within Fixed Asset detail page.

Fixed Asset History page

 

Depreciation Schedule

After user completed a new fixed asset registration, Fixed Asset Connect will automatically create depreciation schedule for the full lifecycle of the fixed asset. User can also show depreciation schedule based on Internal or Tax book and the corresponding depreciation method, convention, and posting frequency.

depreciation schedule