<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000522" xml:lang="en">
   <Header>
      <Title>Reverse depreciation</Title>
      <Keyword type="header" order="d1e1963896">
         <Level1>depreciation</Level1>
         <Level2>disposal assets</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph> ERP Enterprise posts all the journal entries of fixed asset depreciation
		transactions to <GUIRef href="/baanerp/tf/gld" role="module">General Ledger</GUIRef> module for the posting-book defined in the <GUIRef href="/baanerp/tf/fam/tffam0100s000" role="session">FAM Parameter (tffam0100s000)</GUIRef> session. The book must be a financial book or a
		commercial book.</Paragraph>
      <Paragraph>In addition to the posting book, you can also post the
		depreciation transactions for additional or non-posting books defined in the <GUIRef href="/baanerp/tf/fam/tffam0100s000" role="session">FAM Parameter (tffam0100s000)</GUIRef> session to <GUIRef href="/baanerp/tf/gld" role="module">General Ledger</GUIRef> module. If
		you select the <GUIRef href="/baanerp/tf/fam/tffam1110s000#tffam110.post" role="manual">Depreciation Postings to General Ledger</GUIRef> check box in
		the <GUIRef href="/baanerp/tf/fam/tffam1110s000" role="session">Asset Book (tffam1110s000)</GUIRef> session, you can post the depreciation transactions
		for additional books to <GUIRef href="/baanerp/tf/gld" role="module">General Ledger</GUIRef> module.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>If the asset is disposed, the accumulated depreciation postings
		to <GUIRef href="/baanerp/tf/gld" role="module">General Ledger</GUIRef> module
		are reversed for the posting book. In addition, to these reverse entries, ERP Enterprise generates
		the journal entry for reversal of <Link href="/baanerp/tf/glossary/glossary#000117" role="glossary">accumulated depreciation</Link> amount for the additional
		posting books.</Paragraph>
   </GeneralSection>
   <ExampleSection>
      <SectionTitle>Example</SectionTitle>
      <Paragraph>The value of an asset $12000. Asset's life is 1 year. The
		following journal entries are defaulted when you clear the <GUIRef href="/baanerp/tf/fam/tffam1110s000#tffam110.post" role="manual">Depreciation Postings to General Ledger</GUIRef> check box in <GUIRef href="/baanerp/tf/fam/tffam1110s000" role="session">Asset Book (tffam1110s000)</GUIRef> session. ERP Enterprise generates the following journal entries for
		the additional posting book.</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="11">
            <TR no="1" isLast="false">
               <TH width="144" rowspan="1" colspan="1">Transaction</TH>
               <TH width="43" rowspan="1" colspan="1">Type</TH>
               <TH width="365" rowspan="1" colspan="1">Ledger Account</TH>
               <TH align="right" width="49" rowspan="1" colspan="1">Amount</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD width="144" rowspan="2" colspan="1">Asset
				Capitalization</TD>
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Asset account (from
				IDT FAM_ASSE)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD width="43" height="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="365" height="39" rowspan="1" colspan="1">Capital
				Accumulation account (from IDT FAM_CAPA)</TD>
               <TD align="right" height="39" width="49" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="2" width="144" colspan="1">Asset Depreciation
				for Period 1</TD>
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Depreciation Expense
				account (from IDT FAM_DEPR)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="5" isLast="false">
               <TD width="43" rowspan="1" colspan="1">Credit</TD>
               <TD width="365" rowspan="1" colspan="1">Accumulated
				Depreciation account (from IDT FAM_ACCU)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="6" isLast="false">
               <TD rowspan="2" width="144" colspan="1">Asset Depreciation for
				Period 2</TD>
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Depreciation Expense
				account (from IDT FAM_DEPR)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="7" isLast="false">
               <TD width="43" rowspan="1" colspan="1">Credit</TD>
               <TD width="365" rowspan="1" colspan="1">Accumulated
				Depreciation account (from IDT FAM_ACCU)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="8" isLast="false">
               <TD rowspan="4" width="144" colspan="1">Asset Disposal after
				period 2 for 9000</TD>
               <TD width="43" rowspan="1" colspan="1">Credit</TD>
               <TD width="365" rowspan="1" colspan="1">Asset account
				(from IDT FAM_ASSE)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="9" isLast="false">
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Accumulated Depreciation account (from IDT
				FAM_ACCU)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">2000</TD>
            </TR>
            <TR no="10" isLast="false">
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Asset Sales proceed account (from
				FAM_PROC)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">9000</TD>
            </TR>
            <TR no="11" isLast="true">
               <TD width="43" rowspan="1" colspan="1">Debit</TD>
               <TD width="365" rowspan="1" colspan="1">Loss account (from FAM_LOSS)</TD>
               <TD align="right" width="49" rowspan="1" colspan="1">1000</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>The following journal entries are defaulted when you select the <GUIRef href="/baanerp/tf/fam/tffam1110s000#tffam110.post" role="manual">Depreciation Postings to General Ledger</GUIRef> check box in <GUIRef href="/baanerp/tf/fam/tffam1110s000" role="session">Asset Book (tffam1110s000)</GUIRef> session. ERP Enterprise generates the following journal entries for
		the additional posting book.</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="17">
            <TR no="1" isLast="false">
               <TH width="97" rowspan="1" colspan="1">Transaction</TH>
               <TH width="39" rowspan="1" colspan="1">Type</TH>
               <TH width="389" rowspan="1" colspan="1">Ledger Account</TH>
               <TH align="right" width="57" rowspan="1" colspan="1">Amount</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD width="97" rowspan="2" colspan="1">Asset
				Capitalization</TD>
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Asset account (from
				IDT FAM_ASSE)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD width="39" height="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" height="39" rowspan="1" colspan="1">Capital
				Accumulation account (from IDT FAM_CAPA)</TD>
               <TD align="right" height="39" width="57" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="4" width="97" colspan="1">Asset Depreciation for
				Period 1</TD>
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Depreciation Expense
				account (from IDT FAM_DEPR)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="5" isLast="false">
               <TD width="39" height="54" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" height="54" rowspan="1" colspan="1">Accumulated Depreciation account (from IDT FAM_ACCU)</TD>
               <TD align="right" width="57" height="54" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="6" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Debit account for Calculatory Depreciation
				account (from IDT FAM_CALC)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="7" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" rowspan="1" colspan="1">Credit
				account for Calculatory Depreciation account (from IDT FAM_CALC)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="8" isLast="false">
               <TD rowspan="4" width="97" colspan="1">Asset
				Depreciation for Period 2</TD>
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Depreciation Expense account (from IDT FAM_DEPR)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="9" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" rowspan="1" colspan="1">Accumulated
				Depreciation account (from IDT FAM_ACCU)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="10" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Debit
				account for Calculatory Depreciation account (from IDT FAM_CALC)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="11" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" rowspan="1" colspan="1">Credit
				account for Calculatory Depreciation account(from IDT FAM_CALC)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="12" isLast="false">
               <TD rowspan="6" width="97" colspan="1">Asset
				Disposal after period 2 for 9000</TD>
               <TD width="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" rowspan="1" colspan="1">Asset account (from IDT FAM_ASSE)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">12000</TD>
            </TR>
            <TR no="13" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Accumulated
				Depreciation account (from IDT FAM_ACCU)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">2000</TD>
            </TR>
            <TR no="14" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Asset
				Sales proceed account(from FAM_PROC)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">9000</TD>
            </TR>
            <TR no="15" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Loss
				account (from FAM_LOSS)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">1000</TD>
            </TR>
            <TR no="16" isLast="false">
               <TD width="39" rowspan="1" colspan="1">Debit</TD>
               <TD width="389" rowspan="1" colspan="1">Debit account (from IDT FAM_ADDL)</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">2000</TD>
            </TR>
            <TR no="17" isLast="true">
               <TD width="39" rowspan="1" colspan="1">Credit</TD>
               <TD width="389" rowspan="1" colspan="1">Credit account from IDT FAM_ADDL</TD>
               <TD align="right" width="57" rowspan="1" colspan="1">2000</TD>
            </TR>
         </TBODY>
      </TABLE>
   </ExampleSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000142" role="manual">Disposing Assets</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>