This guide describes the most common depreciation issues in FirstBIT Software and provides correct, system-compliant solutions.
All corrections are aligned with FirstBIT (1C-based) software accounting logic and audit requirements.
...
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:
- Issue: Excessive Accumulated Depreciation
...
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
...
Navigation:
Administration - Settings - Asset Management
Enable “Depreciation of Non-Current Assets”
5. Issue: Wrong Document Used for Corrections
...
Common Causes
Manual journal entries entries (Transaction (General Ledger) service tool) used instead of system documents;
Direct register corrections.
Resolution
Use only:
Changes of Fixed Assets Parameters document (Changes of Fixed Asset Parameters );
Standard Month-End Closing procedure.
6. Issue: Changes Made but Depreciation Not Updated
Symptoms
Adjustments exist but 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
Conclusion
Following these guidelines ensures:
correct depreciation calculation;
system stability;
- compliance with accounting and audit requirements.
Thank you for being FirstBIT customer!