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<ManualTopic ID="/baanerp/tf/onlinemanual/000100" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Depreciating Assets</Title>
		<Keyword><Level1>Assets</Level1>
			<Level2>Depreciating</Level2>
		</Keyword>
		<Keyword><Level1>Depreciating</Level1>
			<Level2>Assets</Level2>
		</Keyword>
		<Keyword><Level1>Transactions Depreciating Assets</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Depreciation is a way of allocating the cost of an asset over its useful life for tax and record-keeping purposes. Over time, the value of an asset decreases due to wear and tear. You depreciate assets to record this loss of value on a periodic basis. You can depreciate an asset at any time after capitalization and prior to full disposal or the removal of capitalization. Only vintage and group account assets can accumulate depreciation after they have been disposed.</Paragraph>
		<Paragraph>SSA ERP uses a frequency to determine whether an asset is eligible for depreciation and how often depreciation should be calculated, and it uses a depreciation method assigned to each book to determine how depreciation should be calculated. For more information on methods, see the <Link href="/baanerp/tf/onlinemanual/000180" role="manual">Using Depreciation Methods</Link> topic.</Paragraph>
		<Paragraph>To depreciate the ADR book for assets that are in a vintage or MACRS group account, you must use the <GUIRef href="/baanerp/tf/fam/tffam7272m000" role="session">Depreciate Vintage/Group Account (tffam7272m000)</GUIRef> session. For more information, see the <Link href="/baanerp/tf/onlinemanual/000076" role="manual">Depreciating Vintage/Group Accounts</Link> topic.</Paragraph>
		<Paragraph>You cannot depreciate beyond the end of the current fiscal year without first closing the last period through the <GUIRef href="/baanerp/tf/fam/tffam8205m000" role="session">Period End (tffam8205m000)</GUIRef> session. You can restate depreciation for prior periods. For more information on restating depreciation, see the <Link href="/baanerp/tf/onlinemanual/000136" role="manual">Restating Depreciation for Assets</Link> topic.</Paragraph>
		<Paragraph>Depreciation runs by a through date equal to a particular period and year. You indicate a through date to tell SSA ERP how far depreciation should be run. If you specify a date prior to the last depreciation date, nothing happens. When computing depreciation, SSA ERP calculates and compares the new value to the existing value. The difference is recorded as the depreciation transaction for that period.</Paragraph>
		<List><ListIntro>After determining in which books the selected assets are eligible for depreciation, SSA ERP performs these actions on each asset and book that qualifies:</ListIntro>
			<ListItem>Changes the status of the book from <GUIRef href="/baanerp/tf/domains/fam.bsta#capi" role="enum">Acquired</GUIRef> to <GUIRef href="/baanerp/tf/domains/fam.bsta#depr" role="enum">Depreciating</GUIRef> in the <GUIRef href="/baanerp/tf/fam/tffam1510m000" role="session">Asset Books (tffam1510m000)</GUIRef> session, if depreciation has not previously been calculated for that relationship.</ListItem>
			<ListItem>Calculates and records the depreciation amount for the periods you indicate.</ListItem>
			<ListItem>Adds the calculated depreciation amount to the accumulated and year-to-date depreciation.</ListItem>
			<ListItem>Changes the last depreciation date to the date through which SSA ERP calculated depreciation.</ListItem>
			<ListItem>Changes the remaining life to indicate how much of the life remains to be depreciated.</ListItem>
			<ListItem>SSA ERP creates a journal entry, when appropriate.</ListItem>
		</List>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>Assets for which the <GUIRef href="/baanerp/tf/fam/tffam1110s000#tffam110.bslv" role="formfield">Depreciate Below Salvage</GUIRef> check box is selected in the <GUIRef href="/baanerp/tf/fam/tffam1110s000" role="session">Asset Book (tffam1110s000)</GUIRef> session can depreciate below their salvage value until cost equals zero.</Paragraph>
		</Note>
		<Paragraph>An asset depreciates based on the life recorded in its related books. Most assets measure life in years and months, but some assets track their life in units of production. Before you can depreciate any asset with a life measured in units of production in its related books, you must indicate the units used since the last time SSA ERP calculated depreciation for the asset and its related books. You record units used in the <GUIRef href="/baanerp/tf/fam/tffam1245m000" role="session">Record Asset Units Used (tffam1245m000)</GUIRef> session. For more information, see the <Link href="/baanerp/tf/onlinemanual/000094" role="manual">Calculating Asset Units Used</Link> topic.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>Assets subject to ADR or MACRS group depreciation can be depreciated in the <GUIRef href="/baanerp/tf/fam/tffam7272m000" role="session">Depreciate Vintage/Group Account (tffam7272m000)</GUIRef> session. For more information, see the <Link href="/baanerp/tf/onlinemanual/000076" role="manual">Depreciating Vintage/Group Accounts</Link> topic.</Paragraph>
		</Note>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000171" role="manual">Depreciating Asset Books</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000150" role="manual">Depreciation Journals</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000180" role="manual">Using Depreciation Methods</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
