Calculate and Post Depreciation

Description of process

This process is used to depreciate fixed asset objects using a depreciation proposal. A depreciation proposal may include all the fixed asset objects in the company or a selected range of fixed asset objects. It is also possible to include only one fixed assets object in a depreciation proposal.

In order to include a fixed asset object in a depreciation proposal, the book for which the depreciation proposal is created should be connected to the object. When you connect a book to an object, you will also be required to enter a depreciation method to be used with the book. Therefore, in order to depreciate an object, at least one book and a depreciation method must exist for the company.

Only objects of the status Active can be included in a depreciation proposal.

A depreciation proposal can be created in two ways.

• You can create a depreciation proposal to calculate depreciation for a time period ending on a depreciation period specified by you. This method enables you to include more than one object in the depreciation proposal. The starting date of the time period for which the depreciation is calculated is determined by the depreciation methods connected to the individual objects. Thus, the length of time for which the depreciation is calculated differs from one object to another. Each depreciation period in the time period specified will be fully covered by the depreciation proposal.
   
• You can create a depreciation proposal to calculate depreciation for a time period ending on a date specified by you. When this method is used, only one object can be included in the depreciation proposal, and the starting date of the time period for which depreciation is calculated is determined by the depreciation method connected to that object. This method is used to calculate the depreciation for a time period that is less than one depreciation period. Thus, it is referred to as partial depreciation.

Once a depreciation proposal has been created, it's status will be Created. At this stage, it is possible to modify the depreciation proposal or to cancel it.

Authorizing a depreciation proposal is normally done to check and confirm the depreciation calculations. It results in a change in the status of the depreciation proposal from Created to Authorized. If you want to modify a depreciation proposal that has been authorized, the authorization has to be cancelled before the modifications are made. However, once the authorization is cancelled, the depreciation proposal must be authorized again before it is posted.

A depreciation proposal can be cancelled when its status is Created or Authorized. As a result, the status of the proposal would change to Cancelled and it would not be possible to modify the proposal or to post it.

If a depreciation proposal is connected to a book for which accounting transactions can be created, a voucher will be created in the hold table when the proposal is posted. The postings will be based on the posting types FAP5 Depreciation, Cost Accounting and FAP6, Depreciation, Balance Accounting. On the other hand, if a depreciation proposal is connected to a book for which accounting transactions cannot be created, only object transactions will be created at the time of posting and the posting will be carried out using FAP0 Posting Without Posting Control, Fixed Assets. You can post a depreciation proposal instantly or post it in batch. Posting a depreciation proposal instantly involves blocking all other operations while the posting is being carried out. Posting in batch involves carrying out the posting as a background job.

If you post a depreciation proposal instantly, the status of the depreciation proposal would change from Authorized to Posted. On the other hand, if you post a depreciation proposal in batch, the status of the depreciation proposal would change to BatchPosted. The status would change from Batch Posted to Posted only when the posting operation is completed. If an error occurs while a depreciation proposal is being batch posted, you can reset the status of that proposal to Authorized.

Once a depreciation proposal is posted, you can roll it back. This results in a change in the status of the depreciation proposal from Posted to Rollbacked. If any accounting transactions have been created at the time the depreciation proposal was posted, rolling back the depreciation proposal would also result in the reversal of those accounting transactions.