Problem: What happens if I manually adjust the depreciation amount in the Month-End Closing document? Will future depreciation be recalculated or will the missing amount be restored?
Fixed asset depreciation is calculated automatically during the Month-End Closing procedure based on the depreciation parameters specified for the asset, including (acquisition cost, useful life, depreciation method, etc.).
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- The manual adjustment affects only the selected accounting period.
- The system does not recalculate depreciation Fixfor for previous or future periods.
- The system does not add or subtract adjust future depreciation amounts to compensate for the difference in the following monthscreated by the manual change.
- Future depreciation continues to be calculated according to the asset's depreciation parameters, using the updated accumulated depreciation and remaining book value.
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- Accumulated depreciation: 1,666.67 AED
- February depreciation: 2,000.00 AED
- Remaining book value: 16,333.33 AED
Note. The edited document will not be automatically recalculated by the Month-End Closing procedure. If depreciation data changes after the document has been manually edited, you will need to update the document manually.
Calculation in March
In March, depreciation is calculated automatically during the Month-End Closing procedure.
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The system does not recalculate future depreciation or compensate for the difference in the following months. Future depreciation continues to be calculated automatically during the Month-End Closing procedure based on the asset's depreciation settings and the updated asset balance.accumulated depreciation and remaining book value.
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