Yearly Depreciation Calculation

OBJECTIVE

The Yearly Depreciation Calculation function is used to update the balance at the start of a new financial year to accurately calculate the depreciation for this new year. This option also identifies any undepreciated amounts that have not been transferred.

 

This option should be used as part of the year-end procedure.

PREREQUISITE

 

Steps

 

maestro* > Accounting > Financial Management > Depreciation > Yearly Depreciation Calculation

 

Perform the yearly depreciation calculation

 

Refer to the example attached.

  1. Select the Current Year.
  2. Click Perform annual depreciation calculation:

Field

Description

Type

Available values:

0

Equipment

1

Other

Number

Number assigned to the equipment.

Description

Description that identifies the equipment.

Category

Depreciation category from Define Categories.

Group

Depreciation group from Define Depreciation Groups.

Status

Depreciation status from Define Status Codes.

Calc Code

Code from Define Depreciation Rates.

Periods Expected

Number of expected periods.

Periods Calculated

Number of periods calculated to date.

Valid

Indicates whether or not the transaction is valid to generate the accounting entry.

Asset Opening Bal Year

Balance to be depreciated at the beginning of the year.

Additions of Yr.

Amount of acquisitions during the year that affect the equipment.

Disposals of Yr.

Amount of disposals during the year that affect the equipment.

Asset Closing Bal

Balance of the amount to be depreciated on the equipment at the end of the year.

Opening Depr. Year

Balance of the amount to be depreciated on the equipment at the beginning of the year.

Depr. for the Year

Accumulated depreciation since the beginning of the year.

Depr. on Additions

Total depreciation amount on acquisitions.

Depr. on Disposals

Total depreciation amount on disposals.

Closing Depr.

Balance of the amount to be depreciated on the equipment at the end of the year.

Net Book Value

Net value of the equipment.

Disposal Date

Date of the final disposal of the equipment.

Disposal Amount

Sale amount for the equipment.

Profit/Loss

Amount of the profit or loss related to the disposal.

  1. Click Apply.

 

See also

 

APPENDIX

EXAMPLE OF A YEARLY DEPRECIATION CALCULATION

  • Equipment with a purchase value of $65,000.
  • For 2008 to 2009 = $6,500 / 12 = $541.67 per period
  • August 2009:
    • Asset Opening Bal = Balance of the depreciation in 2009-2010 is still $65,000 because no acquisitions have been added and there have not been any partial disposals in 2008-2009 or since July 2009. Therefore: Asset Opening Bal = Current Asset Balance
    • Opening Depr. = The depreciated balance at the beginning of the year is $6,500.
    • Additions of Year and Disposals of Year. = This year, there is no amount to be depreciated on acquisitions or to be deducted disposals, therefore $0.00.
    • Depr. for the Year = The depreciation for the year is therefore the amount in July 2009, or $541.67.
    • Current Accum Depr Bal. = The current accumulated depreciation is there for $7,041.67.
    • Balance to Depr. = The balance to be depreciated is $65,000 (full value) – $7,041.67 (depreciation to date).
    • Accum Depr Prev Per. = The accumulated depreciation for the year in the preceding period is $547.67, the amount for July 2009.
    • Current Per. Depr. = The depreciation for the current period (August 2009) is $541.67.
    • A.A.D. = The accumulated depreciation since the beginning of the year is $1,083.34.

 

Last modification: November 12, 2024