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Keeping accurate records on the value of your assets is the key when it comes to replacing or disposing of them. Calculating and posting depreciation reduces the value of the asset on your books so you know when the time is right to purchase new equipment.

To reflect the decline in value, the asset depreciates over a period of months or years, depending on the life of the asset. You can calculate depreciation on a monthly or yearly basis, and you can include inactive items when you calculate. Use Enter/Post Depreciation to calculate depreciation for your fixed assets and post the depreciation expense to the general ledger. You can print a depreciation journal to verify the depreciation calculated. The depreciation journal can also be used as an audit record.

When calculating depreciation, ACS compares the depreciation date to the acquisition date unless you select Disregard Acquire Date. If less than one year has passed since the asset was acquired, ACS divides the yearly amount by 12 and then multiplies by the number of months in service. The result is the correct depreciation amount for the first year.

If you do not enter a Depreciable Basis for an Asset, the Historical Cost is used to calculate depreciation. If a Depreciable Basis is entered for the asset, it is used to calculate depreciation, instead of the Historical Cost. Items are depreciated up to salvage value unless you enter a retire date.

After calculating depreciation, you are ready to print the Depreciation Journal.

 To calculate the depreciation of your organization’s fixed assets
  1. Under Manage Records, click the Transactions tab.
  2. In the drop-down list, select Fixed Assets Depreciation and click Go .
  3. Click Calculate Depreciation.
  4. Verify the depreciation date. Click the down arrow to select a date in the calendar.
  5. Optional: To calculate depreciation for inactive items, select Depreciate Inactive Items.
  6. Select whether to calculate depreciation for assets whose depreciation is calculated on a Monthly basis, Yearly basis, or both.
  7. Click Begin to calculate depreciation, then click OK.

If you find an error in your depreciation calculations, you can clear the calculations and recalculate.

 To clear unposted calculations
  1. Under Manage Records, click the Transactions tab.
  2. In the drop-down list, select Fixed Assets Depreciation and click Go .
  3. Click Calculate Depreciation.
  4. Click Clear Current Calculations.
  5. Click Yes to clear current calculations.