Depreciation Books

Clicking the Depreciation Books tab displays the depreciation books home page. .
  • In the View section, select an appropriate list view from the drop-down list to go directly to that list page, or click Create New View to define your own custom list view. List views let you display a list of records that match specific criteria.
  • In the Recent section, select an item from the drop-down list on the right to display a brief list of the top records matching that criteria. The choices are listed in the table that follows.
  • From the list, you can click any depreciation book name to go directly to its detail.
  • Click New to create a new depreciation book.
  • To change the value of an editable field shown in a view double-click it, enter the value you want and click Save.
Recent Choice   Description
Recently Viewed   The last 10 or 25 records you viewed, with the most recently viewed item listed first. This list is derived from your recent items and includes records owned by you and other users.
Recently Created   The last 10 or 25 records you created, with the most recently created item listed first. This list only includes records owned by you.
Recently Modified   The last 10 or 25 records you updated, with the most recently updated item listed first. This list only includes records owned by you.

Depreciation books contain the information needed to calculate depreciation schedules for an asset. An asset must have at least one depreciation book. You can create depreciation books for a single asset or you can create depreciation books for an asset group or an asset sub-group and associate them with a fixed asset. When you do this, the depreciation book from the asset group or asset sub-group is copied to the fixed asset provided that Inherit Values from Parent is enabled in the Fixed Asset Management Settings custom setting. See Grouping Assets for more information.

The actions that you can carry out on a depreciation book are determined by the status of the assets to which it relates. Here is a description of each asset status.

Approval Status Description
New This status is set when you create a new asset. At this point, no information has been posted to the financial accounting system, the asset is not yet approved, and depreciation has not yet been calculated.
Recalled Indicates that the asset was submitted for approval, but was recalled so that changes can be made. At this point no information has been posted to the financial accounting system, the asset is not yet approved, and depreciation has not yet been calculated.
Rejected Indicates that the asset was submitted for approval, but was rejected by the approver. At this point no information has been posted to the financial accounting system, the asset is not yet approved and depreciation has not yet been calculated.
Approved Indicates that the asset was submitted for approval and it was approved. At this point the asset has been posted to Accounting.
Submitted Indicates that the asset was submitted for approval, is locked and is waiting for the approver to approve or reject it. Depending on the approval process your administrator has chosen, you can recall the asset from the approval process to make further changes to it. When you do this, the status of the asset becomes Recalled. At this point, no information has been posted to the financial accounting system, the asset is not yet approved and depreciation has not yet been calculated.
Active Indicates that the asset is approved. At this point, depreciation schedules have been calculated and are ready to send to Accounting.
Note:

Once one of the depreciation schedules on the accounting book associated with the asset has the status Exported, you cannot change the depreciation method or historic information for that asset. In addition, you cannot regenerate depreciation schedules for that asset.
Fully Depreciated Indicates that the asset is fully depreciated and all of its depreciation journals have been calculated and exported to Accounting. At this point, you can no longer change the depreciation method or historic information for that asset. In addition, you cannot regenerate depreciation schedules for that asset.
Disposed Indicates that the asset has been disposed of for a particular reason such as it is lost, destroyed, sold or entered by mistake. Future depreciation schedule messages are no longer sent to Accounting once the asset has been disposed of. In addition, the asset value and depreciation of the asset is cleared from the accounting system and an audit trail is retained.
Canceled Indicates that the asset has been canceled. Depreciation schedules are no longer sent to Accounting.

Book Types

There are four types of depreciation book that you can create for a fixed asset:

Depreciation Book Type Description
Accounting Accounting depreciation books enable you to calculate and report depreciation for an asset in your company financial accounts.
Tax

Tax depreciation books enable you to calculate an accelerated form of depreciation so that you can claim more of an assets cost against a company tax bill in the early years of its life. You can use a tax depreciation book to calculate the tax allowances available for your assets.

 
Custom Custom depreciation books have the same layout as accounting books, but work in the same way as tax books and are not posted to financial accounts. You can recalculate future depreciation for custom tax books regardless of an asset's status. This enables you to explore the effect of different depreciation calculations without changing the depreciation calculations for your accounting and tax depreciation books.
MACRS Tax A MACRS tax book supports the MACRS tax depreciation system used in the United States. A MACRS tax book is not linked to a depreciation method because all the options for calculating MACRS tax depreciation are defined on the book itself.
Note:

You can only associate an asset with one accounting depreciation book. If you need to create additional depreciation books for an asset, you can create several custom and tax depreciation books.

Book Levels

There are three levels of depreciation book:

Depreciation Book Level Description
Asset The depreciation book applies to a single asset.
Sub-Group

The depreciation book applies to a sub-group and will be copied to any assets assigned to the sub-group provided that Inherit Values from Parent is enabled in the Fixed Asset Management Settings custom setting. See Grouping Assets for more information.
Group The depreciation book applies to a group and will be copied to any assets assigned to the group provided that Inherit Values from Parent is enabled in the Fixed Asset Management Settings custom setting. See Grouping Assets for more information.

When you create a depreciation book, you choose a record type, which determines the depreciation book type and the level to which it is to be applied. There are twelve record types for depreciation books. Each record type determines the fields that appear on the depreciation book.

Warning:

If you change a depreciation book after generating depreciation schedules, its depreciation schedules might be inconsistent with the change or might be terminated as a result of the action. When this occurs, a message appears at the top of the Depreciation Book detail page indicating that the depreciation schedules for the book need to be regenerated. To correct this issue, click Generate Depreciation Schedule to regenerate the depreciation schedules.