Scenario
Fixed asset depreciation is calculated automatically based on the asset's depreciation parameters (acquisition cost, useful life, depreciation method, etc.).
If necessary, a user can manually adjust the depreciation amount in the Month-End Closing document for a specific accounting period.
System Behavior
When the depreciation amount is manually changed for a specific month:
- the adjustment affects only that accounting period;
- the system does not automatically recalculate depreciation amounts for future periods;
- the manually adjusted amount is not restored or compensated in subsequent months;
- future depreciation continues to be calculated according to the asset's depreciation parameters, taking into account the updated accumulated depreciation and remaining book value.
Example
Initial data
- Asset cost: 20,000
- Useful life: 12 months
- Monthly depreciation: 1,666.67
October
The user manually changes the depreciation amount from 1,666.67 to 0.00 in the Month-End Closing document and posts the document.
Result
- October depreciation = 0.00
- The accumulated depreciation is lower than originally calculated.
November and subsequent months
The system continues calculating depreciation using the standard calculation rules.
For example, if the user manually sets depreciation to 50% of the calculated amount in November, this adjustment applies only to November.
The system does not automatically restore the missing depreciation in December or any subsequent periods. Depreciation continues to be calculated according to the standard depreciation schedule, based on the updated asset balances after the manual adjustment.
Expected Result
Manual adjustments to depreciation:
- affect only the selected accounting period;
- do not trigger automatic recalculation of future depreciation;
- are not automatically reversed or compensated in subsequent Month-End Closing documents.
Note: Manual depreciation adjustments should only be performed when required by accounting policy or business requirements.