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:

• 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.

Thank you for being FirstBIT customer!