Calculating Depreciation

Owned by Stephen Abela
Last updated: Jun 01, 2022
2 min read

The following process will run-through the depreciation calculation process.  It's important to note that the depreciation is calculated based on the following:

  • The FA Posting date that we are setting - i.e the posting date in which the depreciation is being calculated
  • The last depreciation date or the last acquisition date, whichever one is the most recent

Step-by-step guide

In order to trigger the depreciation procedure the user may:

  • Look for Calculate Depreciation in the search Bar
  • Go to Fixed Assets and Click on Calculate Depreciation

Upon running the procedure, the following details are required:

  1. Insert the Depreciation Book
  2. Insert the FA Posting Date
  3. You can opt, though highly unrecommended to user the force no. of days, rather than having the system calculating the no. of depreciation days on its own
  4. Set the Posting Date - usually the same as the FA Posting Date
  5. Set the Document No. - we suggest to follow a document number scheme
  6. Set the Posting Description
  7. Tick Insert Bal. Account - applicable when the depreciation will actually affect the double entry
  8. Click OK

This process is to be repeated for each Depreciation Book.


Once the process is run we need to finish off the depreciation by posting it.  There are two types of Journals:

  • If the Depreciation Book is integrated to the G/L, i.e. it affects the Double Entry - the user has to post the entries from the FA G/L Journal
  • If the Depreciation Book is NOT integrated to the G/L, i.e. it affects the Double Entry - the user has to post the entries from the FA Journal