This guide describes the most common depreciation issues in FirstBIT Software and provides correct, system-compliant solutions.
All corrections are aligned with FirstBIT software accounting logic and audit requirements.

General Rules for Depreciation in FirstBIT Software

Before troubleshooting, please note the following important rules:

  • Depreciation is calculated only through Month-End Closing (preferable way);

  • Opening Balances and closed periods must not be edited;

  • All corrections must be performed prospectively, in the current open period;

  • Only standard FirstBIT documents should be used for adjustments.


Errors:

  1.  Issue: Excessive Accumulated Depreciation

Symptoms

  • Residual value becomes zero earlier than expected

  • Depreciation stops before useful life ends

Common Causes

  • Month-End Closing was performed out of sequence

  • Previous periods were closed incorrectly or partially

Resolution

  1. Cancel Month-End Closing starting from the period where the issue began

  2. Re-close periods strictly in chronological order

  3. Verify depreciation values after each closing

2. Issue: Incorrect Depreciable Amount

Symptoms

  • Depreciation values do not match expectations

  • Remaining asset value is incorrect

Common Causes

  • Incorrect logic applied when entering opening balances

  • Salvage value or accumulated depreciation ignored

Correct Formula (FirstBIT software Logic)

Depreciable Amount = Gross Cost – Salvage Value – Accumulated Depreciation

Resolution

  • Calculate the correct depreciable amount

  • Adjust it using Changes of Fixed Assets Parameters

  • Do not modify accumulated depreciation

3. Issue: Editing Opening Balances or Closed Periods

Symptoms

  • Inconsistent reports

  • Errors during Month-End Closing

  • Audit risks

Cause

  • Manual corrections in historical periods

Resolution

Not Allowed:

  • Editing Opening Balance documents

  • Reposting closed periods

 Correct Approach:

  • Adjust data only in the current open period

  • Use system-approved correction documents

4. Issue: Depreciation Is Not Calculated at All

Symptoms

  • No depreciation entries

  • No error messages displayed

Common Cause

  • Depreciation option is disabled in system settings

Resolution

Navigation:
Administration - Settings - Asset Management
Enable “Depreciation of Non-Current Assets”

5. Issue: Wrong Document Used for Corrections

Symptoms

  • Corrections do not affect depreciation

  • Values revert during Month-End Closing

Common Causes

  • Manual journal entries  (Transaction (General Ledger) service tool) used instead of system documents;

  • Direct register corrections.

Resolution

Use only:

6. Issue: Changes Made but Depreciation Not Updated

Symptoms

  • Adjustments  with new parameters were created with correct document Changes of Fixed Assets Parameters  but depreciation remains incorrect.

Common Cause

  • Month-End Closing was not re-run after making changing records

Resolution

  • Repost the adjustment document (or post - if it is new);

  • Re-run Month-End Closing in the correct order.

 Best Practice Checklist

  • Always define useful life;
  • Verify depreciable amount calculation;
  • Never edit opening balances;
  •  Correct only in open periods;
  • Use standard FirstBIT software documents for Fixed Assets accounting;
  • Close months strictly in sequence.



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