| Depreciating Asset Books |  |
| You depreciate assets by book when you want to record an asset's cost against revenues for one or more but not all of an asset's related books. When you depreciate assets by book, you indicate the period and year through which ERP LN must calculate depreciation and the books in which depreciation must occur. ERP LN determines which of the indicated assets and books are eligible for depreciation in the selected periods, then calculates the appropriate depreciation amounts. ERP LN calculates depreciation separately for each of an asset's related books. You can depreciate an asset in all of its books at once, or you can depreciate the asset in one or more of its related books. Note You can also calculate depreciation for all of an asset's related books at once. For more information, see the Depreciating Assets topic. An asset can depreciate in a book only until its remaining cost is equal to its salvage value, or until its remaining life is equal to zero. Assets with a negative cost accumulate negative depreciation and cannot depreciate past zero. When an asset reaches these limits, the asset and its related books stop depreciating. Note You cannot depreciate the ADR book for any asset that is part of a vintage/group account. To depreciate the ADR book, you must use the Vintage/Group Accounts (tffam7570m000) session and depreciate the account to which the asset belongs. For each book, ERP LN first determines whether it is time to depreciate. It does this by looking at the depreciation frequency and at the last depreciated date. If it is a period in which the asset book is supposed to depreciate, and no depreciation has already occurred in this period, ERP LN calculates depreciation. For example, if the frequency indicates that the asset was supposed to depreciate in January, February, and March and it is currently April, ERP LN checks the last depreciation date to see if depreciation has been run through March. If not, it runs it for all periods that need to have it run. If the general ledger is closed for any of the periods, ERP LN books the depreciation as one large transaction to the current period. However, if the general ledger is open, one transaction is created for each period. Note You must not depreciate beyond the end of the current fiscal year without first closing the last period through the Period End (tffam8205m000) session. Depreciation has the following effects in the Fixed Assets module: ERP LN creates a journal entry using the depreciation in the Asset Book (tffam1110s000) session. The asset book status changes from Acquired to Depreciating, if this is not already set. ERP LN sets the Last Depr. Date for the asset book to the date you depreciated the asset. Year to date, Accum.Deprec., and Net Book Value change for the asset, as does remaining life. |