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:
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- 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
Cancel Month-End Closing starting from the period where the issue began
Re-close periods strictly in chronological order
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
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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:
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 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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