Depreciation Tab

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Use this tab to assign depreciation details to the asset based on an effective date. If you are maintaining both tax and accounting balances, you can enter separate details for each.

Restart Depreciation after zeroisation

Select this option to only calculate depreciation on additional costs added after zeroisation. If not selected, Greentree Desktop calculates depreciation on the full cost of the asset (original cost plus any additions).

The Effective Date is the date from which the specified rate applies.

Select the Type based on whether you are setting up tax or accounting rates.

Select the Depreciation Code. When the code is selected, all remaining fields updates with the code defaults. However, they may be changed if some of the depreciation parameters are specific to the asset.

Suspend To

Enter a date to suspend the calculation of depreciation for the asset up to and including the date entered. For example, if you know an asset is going to be out of commission for a period of time, you can enter a date based on when you think the asset is back in action, and no depreciation is calculated for the asset until this date is reached.

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These rules apply to this option:

• If deselected, the depreciation details are applied based on the original cost (straight-line method) or opening book value (diminishing value), starting from the effective date.
• If you select this option, the depreciation details are applied based on the current book value of the asset, as at the effective date specified here.

The first depreciation details set up for an asset always have this option deselected, as no previous depreciation has been calculated for the asset. Details are applied to the asset's cost or opening book value by default.

WARNING: If you have processed a depreciation at an incorrect rate and want to amend this for subsequent depreciation runs, you can change the rate or add it in the current year. This could result in a catchup of depreciation in the next depreciation run.

Click Add new rates to add new details to the table. This will append both a tax and an accounting type line, and details uses the asset's analysis group. When adding new lines, the Effective Date must always be later than previous lines, and must also be a period start date.

Once depreciation is generated for an asset, the details become read-only and cannot be changed.

Note: Information entered prints on the Asset Master List.

• Fixed Asset Module Control
• Depreciation Code Maintenance
• Analysis Group Maintenance

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