| # Accelerated depreciation Accelerated depreciation is to depreciate an asset by an extra amount in a specific year. In some countries, accelerated depreciation can reach a maximum of 100 percent of the yearly standard depreciation amount, until the asset value reaches zero. Accelerated depreciation reduces the depreciation time. Accelerated depreciation transactions must be posted to specific ledger accounts. You must enter the accelerated depreciation amount expressed as a percentage of the accumulated depreciation. The percentage cannot exceed 100. Accelerated depreciation follows the same rules as the standard depreciation. If the standard depreciation is suspended, the accelerated depreciation is also suspended. If the actual use of the asset changes, you can reduce or suspend the accelerated depreciation accordingly. Note Accelerated depreciation does not change the regular depreciation amount for subsequent periods. To perform accelerated depreciation You can use the Mass Accelerated Depreciation (tffam1208m000) session to depreciate a range of asset books by an additional amount. You can do this only once a year. Before you can perform accelerated depreciation for a period, the asset must have been depreciated up to the beginning of the first period for which you perform accelerated depreciation and no deprecation must exist for later periods. To ensure this, depending on the last depreciation date of the asset book, ERP Enterprise performs normal depreciation for the preceding periods or restates the depreciation as required for any later periods if you run the Mass Accelerated Depreciation (tffam1208m000) session. If you perform accelerated depreciation, ERP Enterprise calculates and posts accelerated and additional depreciation. For details, refer to Fixed Assets / Accelerated Depreciation. In the Asset Book (tffam1110s000) session, the Ant. Depreciation check box indicates whether you performed accelerated depreciation on the asset. Reversing the accelerated depreciation If you reverse the accelerated depreciation, ERP Enterprise reverses the accelerated depreciation as well as the regular depreciation of any periods following the transaction date of the accelerated depreciation. After reversal, you must manually perform depreciation, starting at the year for which you performed the reversal process. If you reverse the accelerated depreciation for a range of years in the past, you must manually perform the regular depreciation for the periods later than the last period for which you reversed the suspended depreciation. For generated reversal transactions, ERP Enterprise only creates journal entries if journal entries exist for the original transactions, independent of whether you select or clear the Suppress Journal Entries check box in the Mass Accelerated Depreciation (tffam1208m000) session. If you reverse all the accelerated depreciation performed for the asset, ERP Enterprise clears the Ant. Depreciation check box in the Asset Book (tffam1110s000) session. |