Using Asset Depreciation

Asset Depreciation automatically calculates depreciation amounts using the straight-line depreciation method and posts the monthly depreciation expense to the appropriate general ledger accounts. Asset Depreciation provides the following new features and benefits:

• Online, real-time edits to validate all data entered.
• Depreciation values calculated online, real-time.
• Entries are posted in the month-end cycle instead of the 1st day of the month effective dated to prior month.
• Entries can post to any general ledger account in any branch.
• User-defined depreciation amounts and one-time depreciation amounts are supported.
• Increases efficiency and accuracy of asset depreciation.
• Eliminates manual task of posting depreciation expense to the appropriate general ledger accounts.

The system uses a straight-line depreciation method to calculate the monthly depreciation amount: (PURCHASE PRICE - SALVAGE VALUE)/ESTIMATED LIFE.

To automatically post the asset depreciation general ledger entries in the month-end cycle, specify Y in the General Ledger Post Indicator field in the Additional Options section of the 301 Report Rules. The asset depreciation general ledger entries are posted at month-end using the Basic Journal Voucher window. Portico will debit the general ledger and branch specified in the Depr Expense Account and Branch fields and credit the general ledger and branch specified in the Depr Allowance Account and Branch fields on the Vendor Information window.