Calculate Depreciation
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The task can be found and run from the following locations:
in the Fixed Asset overview is located in the Process -> Calculate Depreciation menu or in the Actions menu, where the tasks can be rearranged by the user using the Personalize function
or search using the system magnifier.
Accounting depreciation
First, the system calculates accounting depreciation in a standard way. Subsequently, the OC function is executed. Asset cards that have the Purchase Price Retrospectivally field selected are recalculated for depreciation from the beginning of depreciation. For asset cards that have a value in the "Depreciation Interrupt from" field, aliquot depreciation is calculated on the date of the interruption from.
This documentation describes only modifications to the method of calculating accounting depreciation. A description of the standard accounting depreciation calculation process is not included in this documentation.
Purchase Price (PC) retrospectively:
A new field "Purchase Price Retrospectivally" has been added to the depreciation book, which, if checked, will recalculate the accounting depreciation for the purchase price retrospectively. PC Change (TM) is when invoices are additionally received for PC → then for items FA Posting Type = Acquisition Cost the depreciation from the "Depreciation Starting Date" date (Purchase Price Retrospectively) is recalculated and the difference is then added to the calculated depreciation for the next month for which the depreciation is generated.
Interruption of accounting depreciation:
A new field "Depreciation Interrupt from" has been added to the depreciation book. If this field is filled with some value (contract termination date), it calculates aliquot depreciation for the period / month - i.e. 2 lines for accounting depreciation for one period, i.e. 1st line calculates aliquot depreciation + number of days of aliquot depreciation, 2nd line with zero depreciation + remaining number of days (up to a total of 30) and then corrects depreciation when retrospectively entering suspension of depreciation to the period for which depreciation has already been posted, When the correction is made by the first month for which depreciation is generated.
A similar aliquot calculation principle applies to the standard "Depreciations Interrupted up to" field if this field is filled with a value.
In the case of retrospective suspension of depreciation, the system suggests an option to cancel posted entries of the Depreciation type.
When the "Depreciation Interrupt from" date is entered retrospectively via the Asset Task for Interrupt Depreciation, the system directly suggests reversing the posted depreciation in the journal with the date of the first day of the open accounting period if the date of the canceled entry falls within the closed period.
If you manually enter the date "Interrupt depreciation from", you will be asked if you want to cancel the items, if Yes then the cancellation will be performed with the same date as in the job, if Not then it will allow the new date "Interrupt depreciation to" to be entered and the cancellation will not be performed.
As soon as the book value = 0 or depreciable basis = 0 is in the book of depreciation, the standard functionality will be maintained and no depreciation will be proposed. That is, assuming that the Depreciation Below Zero Permit is not set for the depreciation book account.
Dependencies and assumptions
The addiction is that it is in accountant The depreciation book is set to calculate depreciation for 360 days, i.e. the current year, not the fiscal year. A hard check is specified for this setting in the depreciation generation process.
The basic assumption is to set up Straight-line depreciation for the Depreciation Book and link the asset card to the financing contract.
An essential prerequisite is the proper accounting of contract instalments.
Enhanced Job Processing Process
When a task is invoked, the task dialog box is displayed first. In the dialog window, the user can select the depreciation book for which the depreciation is to be generated, where the default depreciation book (Default Depr. Book) set in the Fixed Asset Setup (FA) table. Next, enter the Posting Date for which the depreciation is to be generated, enter the text that will be used as the document number for the proposed depreciation lines in the Document No. field, and enter the text that will be used in the proposed depreciation lines in the Posting Description field. It is also possible to enter filters for data from the Fixed Asset Card (e.g. card number, FA Class or Subclass Code, etc.). The task will work with the set conditions and filters after it is started by clicking the OK button.
When you run the task by clicking OK, the task executes Calculation of depreciation according to the standard rules for calculating accounting depreciation. Subsequently, the modified processes for OC are started.
The process of calculating OC accounting depreciation is:
It checks the following conditions:
The depreciation book is the Default Depr. Book). If the condition is not met, the calculation starts Tax Depreciation. If the condition is granted, it continues with further processing
In the Default Depreciation Book (Default Depr. Book), the Fiscal Year 365 Days field is set to No. If the condition is granted, it continues with further processing. If the condition is not met, terminate the processing and display an error message
In the accounting (default) book of depreciation for the asset card, it checks:
The Disposal Date field is blank. If the condition is granted, the processing continues. If the condition is not met, the processing of the calculation of the given asset card is terminated and the next asset card is processed
The Depreciation Method = Straight-Line field. If the condition is granted, the processing continues. If the condition is not met, it terminates processing and displays an error message
Resets the calculated depreciation amount that the task calculated according to the standard accounting depreciation calculation rules
Creates all lines for calculated depreciation and assesses whether to create lines with zero depreciation as follows:
if there is zero depreciation and it is a depreciation of the PC, the Book Value of the given asset card is greater than zero, so it evaluates whether the Book Value + Salvage Value (the residual value is with a minus sign) is equal to zero. If:
Yes, this creates a zero row
No, that's not how a null row is created
Before the task goes to reduce depreciation due to the interruption of depreciation in the process, it has already created a line and goes to see if the PC is not retrospective.
Purchase Price Retrospectivally – the assumption that depreciation is accounted for regularly, on a monthly basis, must be met!!
In the Default Depreciation Book, look to see if the Purchase Price Retrospectivally = Yes field is:
If it does not meet the condition, it terminates the processing of this calculation and moves on in the process (to the step of reducing depreciation due to interruption of depreciation)
If the condition is granted, the processing continues as follows:
The checks on the depreciation book are Depreciation Method = Straight-Line
If the condition is not met, the calculation is terminated with an error message
If the condition is met, it continues to process the depreciation calculation
It then calls the function to calculate the new PC:
Checks if the last entry for the asset card is an entry with a Classification type (FA Posting Type = Acquisition Cost)
If it does not meet the condition, it terminates the processing of this calculation and moves on in the process (to the step of reducing depreciation due to interruption of depreciation)
If the condition is met, it continues to process the depreciation calculation
Filter entries for an asset card with FA Entry Type (FA Posting Type) = Depreciation
If there is no such item, it terminates the processing of this calculation and moves on in the process (to the step of reducing depreciation due to interruption of depreciation)
If there is such an item, then:
Resets: the amount of posted depreciation, the amount of posted depreciation days, and the depreciable basis
Check whether the date for generating depreciation is the last day of the month
If the condition is not met, it writes an error message "Depreciation must be calculated on the last day of the month when the Purchase Price Retrospectively is Yes." (Depreciation must be calculated for last day ofmonth when Purchase Price Retrospectivally is Yes) and terminates the processing of the depreciation calculation
If the condition is granted, This continues to process the depreciation calculation
Add up:
The amount of depreciation already posted
Number of days of depreciation already posted
He calculates the new depreciable basis by adding up all the items on the asset card with the Classification and Residual Value entry type (FA Posting Type = Acquisition Cost and Salvage Value)
Checks the depreciation book for a non-blank value in the No. of Depreciation Months field
If the condition is not met, the processing of the depreciation calculation of the asset card is terminated
If the condition is granted, So you can calculate:
Total number of depreciation days for a given asset card (number of depreciation months x 30)
Daily depreciation as a new depreciable base divided by the total number of days of depreciation
He calculates the posted depreciation by taking the number of days of already posted depreciation x daily depreciation
New depreciation for the generated period as daily depreciation x 30
Calculated depreciation is rounded according to standard principles
A new variable calculates the difference between the Recalculated Depreciation Amount and the Amount of Already Posted Depreciation (Actual)
The number of days of depreciation is 30
uses the same principle for rounding depreciation as for the standard calculation (uses the Final Rouding Amount from the FA Depreciation Book and the Default Final Rounding Amount from the Depreciation Book Setup, uses the Amount Rounding Precision from the General Ledger Setup for final rounding)
Go to the depreciation reduction point in the process and perform the depreciation reduction if the conditions that are described in the depreciation reduction process point are met
After reducing depreciation (if the conditions for reduction have been met), it adds the calculated difference in depreciation for the previous (already posted) period to the calculated depreciation
Before the job starts writing lines in the Fixed Asset G/L Journals, it looks to see if there is a non-zero value in the "Depreciation Interrupt from" and "Depreciations Interrupted up to" fields in the depreciation book of the asset card. If the conditions are not met, the task proceeds to the next step. If the conditions are met, then Calculate Reduced Depreciation thus:
resets the number of days of depreciation
checks if there is a posted entry of the Acquisition Cost type with a date higher than the last posted entry of the Depreciation type
If it does not exist, it terminates processing and continues processing the next step
if it exists, it calculates depreciation for the generated period according to which date "Interrupt depreciation" is filled in:
If they are filled in both datesso:
If the "Depreciations Interrupted up to" date is greater than or equal to the date for generating depreciation, the number of depreciation days is entered as zero
If the date "Depreciations Interrupted up to" is less than the date for generating depreciation, it is compared whether the date is:
larger than the date of the last posted depreciation, so it compares the "Depreciation Interrupt from" date:
If the Interruption From date is greater than the date of the last posted depreciation, it calculates the number of days from the last posted depreciation to the Interruption From date and suggests three depreciation lines:
First with the number of days until Termination of interruption (number of days times daily depreciation)
Second with the number of days of interrupted depreciation and a zero amount
Third with an aliquot amount for the number of days after Termination of interruption (number of days times daily depreciation)
If the Break-From date is less than the date of the last posted depreciation:
Calculates the number of days to depreciate as the difference between the specified break-off to date and the date on which depreciation is generated. Two depreciation lines are suggested in the journal. One with the number of days of suspended depreciation and a zero amount until the interruption ends. The second with an aliquot amount for the number of days after the end of the interruption (number of days times daily depreciation)
smaller than the date of the last posted depreciation, so the entire calculated depreciation is suggested (the depreciation break was terminated before the period for which the depreciation is generated and the reason for reducing depreciation no longer exists)
If the only the date "Depreciation Interrupt from", compares whether the entered date is greater than the date of the last posted depreciation and at the same time is less than or equal to the date of depreciation generation
If the condition is met (the date of interruption from is in the generated period for depreciation), it suggests one line for aliquot depreciation with the number of days to suspend depreciation from the amount multiplied by the number of days and daily depreciation. The second line is suggested as zero depreciation with the number of days from the suspension of depreciation to the date of depreciation generation
If the condition is not met and the Interrupted From date is less than or equal to the depreciation generation date, it proposes zero depreciation with the number of days for the generated depreciation period
If the only the date "Depreciations Interrupted up to" if it is less than the depreciation generation date and is less than or equal to the date of the last posted depreciation
If the condition is met, it calculates the number of days for depreciation interruptions and suggests an aliquot depreciation line for the days after the end of the depreciation break times daily depreciation. The second line suggests zero with the number of days until depreciation is suspended.
If the condition is not met, it checks whether the interruption date is greater than the depreciation generation date. If the condition is met, it proposes zero depreciation with the number of days for the generated depreciation period. If the condition is not met, the depreciation will not be reduced and the calculated depreciation will be proposed
uses the same principle for rounding depreciation as for the standard calculation (uses the Final Rouding Amount from the FA Depreciation Book and the Default Final Rounding Amount from the Depreciation Book Setup, uses the Amount Rounding Precision from the General Ledger Setup for final rounding)
Suggests all lines for calculated depreciation to the Fixed Asset G/L Journals.
Tax depreciation
The Calculate Depreciation task is modified so that if certain conditions are met, it proposes half tax depreciation and at the same time suggests a line for disposal.
After you run the task, when the same depreciation book code is entered in the Depreciation Book field in the Task dialog box as is set in the Fixed Asset Setup table in the Depreciation Tax Book (Tax Depreciation Book), the task first checks whether:
In Fixed Asset Setup, the Active 50% Depreciation field is enabled
The Asset Card is Accounting disposed of, i.e. in the Depreciation Book the field is Disposed Of = Yes.
If the result in both controls = yes, then:
First, it suggests a line in the Fixed Asset Journal for depreciation with the same date as the FA Posting Date entered in the Task dialog (typically 31.12.XX). To calculate depreciation, it proceeds in a standard way, taking into account the parameters specified in the dialog window after starting the task, i.e. setting the field (Use Force No. of Days), where it is recommended to enter Yes for the calculation of annual depreciation, and the field (Force No. of Days), where it is recommended to enter the value 360 for calculating annual depreciation. It then divides the calculated depreciation by two. Rounds the result according to the depreciation book setup. The final result is suggested to the Fixed Asset Journal
then suggests a line in the Fixed Asset Journal for disposal with the same date as for depreciation.
Suggested journal lines must be posted. Post depreciation first, followed by disposal (using the filter on FA Posting Type)).
If the Active 50% Depreciation field is not enabled in Fixed Asset Setup, the system will maintain the standard calculated depreciation amount.
If the asset card is not accounted for, the system proceeds with a standard calculation, according to the calculation parameters specified in the Task dialog window, and a row for disposal is not created.
Note: the modifications are valid only for CZ legislation.