Asset Depreciation: To Calculate Depreciation

The following activity will walk you through the process of calculating depreciation for fixed assets.

Story

Suppose that the fixed assets belonging to SweetLife Fruits & Jams have to be depreciated through September 2024. Acting as a SweetLife accountant, you need to calculate depreciation for the fixed assets that you have created through the specified period.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

Process Overview

In this activity, on the Calculate Depreciation (FA502000) form, you will calculate depreciation for all fixed assets through September 2024. On the Fixed Assets (FA303000) form, you will review the calculated depreciation of one fixed asset. Finally, on the FA Balance Projection by Account (FA670010) form, you will run a report and review the calculated accumulated depreciation and net balance for all fixed assets.

System Preparation

Before you begin calculating depreciation, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, click the Business Date menu button, and select 9/30/2024 on the calendar.
  3. In the company to which you are signed in, be sure that you have implemented the fixed asset functionality by performing the following prerequisite activities: Fixed Assets: To Configure the System for Fixed Asset Management, Fixed Assets: To Configure the Fixed Asset Functionality, and Fixed Assets: To Create Fixed Asset Classes.
  4. Make sure that you have created the fixed assets by performing the following prerequisite activities: Conversion of a Purchase: To Convert a Purchase to an Asset, Conversion of a Purchase: To Convert a Purchase to Multiple Assets, Fixed Asset Creation: To Create and Reconcile an Asset, Fixed Asset Creation: To Create an Asset with Multiple Units, and Non-Default Asset Settings: Process Activity.
  5. Make sure that you have split the Land fixed asset by performing the Splitting of Assets: Process Activity prerequisite activity.
  6. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step: Calculating Depreciation

To calculate depreciation for fixed assets, do the following:

  1. Open the Calculate Depreciation (FA502000) form.
  2. In the Selection area, specify the following settings:
    • Company/Branch: HEADOFFICE
    • To Period: 09-2024 (inserted automatically)

      This is the financial period through which the system will calculate depreciation.

    • Action: Calculate Only

      When the system performs this action, it will not generate depreciation transactions.

  3. On the form toolbar, click Process All. The system calculates depreciation through the specified period for each fixed asset.
  4. On the Fixed Assets (FA303000) form, open the Desktop computer asset and review the Depreciation tab, as shown in the following screenshot.
    Figure 1. Depreciation calculated for a desktop computer


    The system calculates depreciation from the period the fixed asset was put into use (Depr. from Period on the Balance tab) through the period you specified in the To Period box. The Depreciated column currently shows 0.00 for the calculated periods, because no depreciation transactions have been released.

  5. Open the FA Balance Projection by Account (FA670010) report form.
  6. On the Report Parameters tab, specify the following settings:
    • Company/Branch: HEADOFFICE
    • Book: FIN (Posting Book)
    • Period From: 02-2024
    • Period To: 09-2024
  7. Click Run Report, and review the generated report.

    The generated report displays the projection of fixed asset balances for the specified financial periods, grouped by account-subaccount pairs. The calculated accumulated depreciation is also shown on the report.