Introduction

Post Depreciation process

Depreciation operates at the Asset Class level rather than the individual Asset level. This means the Posted Depreciation Amount is for each Asset Class, not each individual Asset. 

Depreciation works as follows:

1. For each Asset Class, postings are calculated by dividing the Net Book Value or the Purchase Cost (depending on the Depreciation Method) by the number of Periods in the Year and applying the Depreciation Rate %.
2. Postings are made for the period in question to the:
   • GL Accumulated Depreciation Asset Account
   • GL Depreciation Expense Account
3. The Net Book Value is reduced by the Depreciation Amounts.

Post Depreciation Schedule

Deprecation should be run during the period end process. Deprecation journals are dated the last day of the period, starting with the last day of the period containing the Start of Depreciation Date. 

If a fixed asset has a purchase date earlier than this, all periods up to the Depreciation Start Date must be posted manually using the GL Journal, ensuring that the Net Book Value is populated with the appropriate figure. 

See:

• Managing Fixed Assets ‍
• Managing Fixed Assets Classes 
• Post Depreciation Journal (22.3) - AIQ Academy ‍  

Post Depreciation

Depreciation starts with the earliest unposted period. Repeat the process below to consecutively post depreciations until the latest closed period.

1. Go to Fixed Assets Register > Fixed Assets Classes > Post Depreciation.
   
   
   
   
2.  Click Post Depreciation and click OK to continue.
   
   
   
   
3. The Transaction Browser will open, displaying the relevant GL postings in the GL Accumulated Depreciation Asset Account and GL Depreciation Expense Account. 
   
   If you need to reverse a depreciation for a period, click Reverse. This will not revert or affect the next Depreciation journal. Its date will continue from the last one as if the reversal never happened.
   
   

   
   

4. To view the updated records, go to Fixed Asset Register > Fixed Assets. Note the following:
   • The Accumulated Depreciation column displays the newly calculated amount.
   • The Accumulated Depreciation has been subtracted from the Purchase Cost to produce a new Net Book Value.
     
     
     
     
     
5. To view the newly created postings, go to General > Transaction Browser and find the transaction. The following shows postings made to the GL Accumulated Asset Depreciation Account:
   
   

View Depreciation History

After each depreciation run, the system automatically creates an Excel Report containing asset data. These reports can auditors understand the GL Depreciation Postings for each financial period. They will only provide the current position of the Fixed Assets listing and cannot be backdated. 

1. To include the asset’s Next Depreciation column in the report, go to Add/Remove Columns and add it to the grid. (It will appear in the report as Depreciation Amount.)
2. To access the workbooks for all financial periods, go to Fixed Asset Register > Fixed Asset Classes > View Depreciation History. 
   
   
   
    
3. All reports from start of depreciation will appear in the Document Manager. Open the relevant report. The workbook contains two tabs. 
   • The first tab contains the raw, unformatted data. 
   • The second tab groups this data by asset class, making it easier to identify the figures of interest. 

Fixed Asset Impairment

1. Open the relevant Fixed Asset.
   
   
   
   
2. In the Net Book Value field, enter a new value and click Process. The system will generate an immediate depreciation journal for the difference. For example, if the original value is 130 GBP and you enter 120 GBP, this will generate a 10.00 GBP depreciation journal. Click OK to accept.
   
   
   
   
3. To check details of the journals created, go to General > Transaction Browser.