Posting Depreciation

Depreciation is used to allocate the cost of fixed assets, such as machinery and equipment, over their depreciable life. For each fixed asset, you must define how it will be depreciated.

There are two ways to post depreciation:

The program can calculate daily depreciation, thus allowing you to calculate depreciation for any period. You can therefore analyze current operating results on, for example, a monthly, quarterly, or annual basis.

The program uses a standard year of 360 days and a standard month of 30 days in the calculation.

Allocating Depreciation

If a fixed asset is used by several departments, periodic depreciation can be automatically allocated to these departments according to a user-defined allocation table.

Canceling Incorrect Entries

You can cancel incorrect depreciation entries. This can be done with the Cancel FA Ledger Entries batch job. After this, you can post the correct amount of depreciation by running the Calculate Depreciation batch job again.

When you correct errors, they are posted as FA error ledger entries.


Indexation is used to adjust values for general price-level changes. The Index Fixed Assets batch job can be used to recalculate the depreciation amounts.

Related Topics

Fixed Asset Overview

Depreciation Methods

Posting Depreciation Manually by Using FA G/L Journals

Filling In and Posting FA G/L Journals

Posting Depreciation Manually by Using FA Journals

Filling In and Posting FA Journals

Calculating Depreciation Automatically

Viewing Depreciation Ledger Entries

Canceling and Recalculating Depreciation

Viewing FA Error Ledger Entries

Fixed Assets Accounting Setup

Fixed Assets Depreciation Methods

Indexation of Fixed Assets