1Step by step #
- For each category choose the method , give the rate (or, for straight line, the useful life ) and the residual value .
- Pick the two ledgers: the one depreciation is debited to and the one it is credited to .
- Look down the asset list. A tinted line is missing something: a cost, a date to start from, or its category's method.
- For an asset you already held, open Its own figures and give its book value and the day that value is on.
- Press Save (F5) , then go to Depreciation Run .
2The two methods #
- Straight line : (cost less residual value) × rate a year - the same amount every year. With a useful life instead of a rate, the same amount is spread evenly over the life.
- Written down value : the rate on the book value the asset had when the financial year began, so the charge gets smaller each year.
- Not depreciated : for land and the like. The asset is left out of every run without being reported as missing anything.
- Either way a charge is for days : an asset put to use part-way through a year is charged only for the days it was in use.
- An asset is never depreciated below its residual value . Its last charge is whatever is left above it.
3An asset's own figures #
- A blank box means the category's . Fill only what is different for this asset.
- The rate and the useful life go together: an asset given either one uses its own pair, not half of the category's.
- Put to use is the day depreciation begins. Blank = the asset's Install Date, else its Invoice Date.
- Opening book value and its day are for an asset you held before the program began to depreciate it: what it was worth at the end of that day. Charging starts the next day. Use the last day of a financial year where you can - written down value is then exact from the first run.
- Once depreciation has been posted for an asset, its opening value and put-to-use date can no longer be changed. Reverse the runs first.
- Leave it out of every run stops depreciation for one asset without changing its figures.
4Income tax #
- For income tax, assets are pooled in blocks and a block is depreciated as a whole at its rate. Name the block on the category and give its rate.
- Several categories may share a block; they must then give the same rate.
- This is a separate statement, on the Income tax tab of Depreciation Run. It is never posted to the books.
5Toolbar & keyboard #
- Refresh (F3) reads everything again and drops changes not yet saved.
- Save (F5) saves every category and asset you changed, together. If anything is wrong, all of it is listed and nothing is saved.
- In the asset's window, OK (F5) keeps the figures on the list; they are written when you press Save. Esc closes it.
6If something does not work #
"You can look, but not change anything here ..." / "You do not have the right to change the fixed-asset register (Fixed Assets Master, Alter). Ask your administrator."
- Why
- Changing how assets are depreciated needs the Alter right on Fixed Assets Master.
- What to do
- Ask your administrator to give your user or user group Alter on Fixed Assets Master.
"There is no asset category yet."
- Why
- Depreciation is set up by category, and none exists.
- What to do
- Add the categories under Fixed Assets Category and put each asset in one on Fixed Assets Master.
"Nothing was changed."
- Why
- Save was pressed with every category and asset as it was read.
- What to do
- Nothing needs doing.
"...: written down value needs a rate." / "Written down value needs a rate."
- Why
- Written down value is a percentage of what is left, so it cannot work from a useful life.
- What to do
- Enter the rate per cent a year.
"...: straight line needs a rate or a useful life." / "Straight line needs a rate or a useful life."
- Why
- Straight line was chosen and both boxes are empty.
- What to do
- Enter the rate, or the useful life in months.
"...: the rate is a percentage a year, from 0 to 100." / "...: the useful life is in months, up to 1200." / "A rate above 100 per cent a year is not possible."
- Why
- A figure is outside what is possible.
- What to do
- Correct the figure.
"...: the residual value is a percentage of cost, from 0 to below 100." / "...: the residual value is from 0 to below its cost." / "The residual value is not below the cost, so there is nothing to depreciate."
- Why
- On a category the residual value is a percentage of cost; on one asset it is an amount. Either way it must leave something to depreciate.
- What to do
- Enter a smaller residual value, or leave it blank for nought.
"...: pick the ledger depreciation is debited to and the ledger it is credited to - a run cannot be posted without them."
- Why
- The category is depreciated but one or both of its ledgers are not picked.
- What to do
- Pick both ledgers on the category's card.
"...: the ledger debited and the ledger credited are the same."
- Why
- A Journal that debits and credits one ledger does nothing.
- What to do
- Pick the expense ledger in the first box and the accumulated depreciation (or asset) ledger in the second.
"...: a ledger picked no longer exists or is inactive."
- Why
- A ledger chosen earlier was removed or made inactive.
- What to do
- Pick another ledger, or make that one active again in Ledger Account Master.
"...: name the income-tax block the rate belongs to." / "...: the income-tax rate is a percentage, from 0 to 100." / "...: the income-tax block name is 100 characters at most."
- Why
- An income-tax rate was given without a block, or a figure is outside what is possible.
- What to do
- Name the block, correct the rate, or clear both.
"The income-tax block '...' is given different rates on different categories. A block has one rate."
- Why
- Two categories name the same block with different rates, and a block is depreciated as a whole.
- What to do
- Give every category of that block the same rate, or give one of them a different block name.
"...: an opening book value needs both the value and the day it is the value on."
- Why
- Only one of the two boxes is filled.
- What to do
- Fill both, or clear both.
"...: the opening book value is from 0 up to its cost." / "...: the opening book value cannot be dated in the future."
- Why
- A book value above the cost, below nought, or on a day that has not come.
- What to do
- Correct the value or the day. If the cost itself is wrong, correct it on Fixed Assets Master first.
"...: depreciation has been posted for it, so its opening book value can no longer be changed. Reverse the runs first." / "... its put-to-use date can no longer be changed ..."
- Why
- The posted runs were worked out from those figures. Changing them now would leave the books and the asset disagreeing.
- What to do
- On Depreciation Run, reverse the runs that charged this asset (newest first), change the figures, and post again.
"...: it is not in the register any more, or belongs to a branch you cannot see."
- Why
- The asset was deleted, or moved to a branch you have no access to, since the list was read.
- What to do
- Press Refresh (F3).
What is missing: "No depreciation method is set on the asset or its category."
- Why
- Neither the asset nor its category says how it is depreciated, so every run leaves it out.
- What to do
- Choose the method on the category's card. For land and the like choose Not depreciated.
What is missing: "The purchase cost is nought, so there is nothing to depreciate."
- Why
- The asset has no purchase cost on Fixed Assets Master.
- What to do
- Enter the cost on Fixed Assets Master.
What is missing: "It has no put-to-use, install or invoice date, so the day depreciation begins is not known."
- Why
- Depreciation is charged by days from the day the asset was put to use, and no date is known.
- What to do
- Open Its own figures and enter Put to use on, or enter the Install Date on Fixed Assets Master.
"The depreciation method '...' is not one the program knows."
- Why
- The method stored for the asset or category is not straight line, written down value or not depreciated - it was written from outside the program.
- What to do
- Choose the method again and save.
This is the help InvoiceNET® ERP shows beside the Depreciation Setup screen. Whether you have the screen depends on the modules of your licence and the rights your administrator has given you.
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