¶ Purpose
The Depreciation Calculation report automatically calculates the depreciation value of the asset as per accounting standards.
¶ Prerequisites
The following prerequisites must be completed.
- The user must have access rights for the corresponding transactions.
- The Asset Master is required.
- The GRN transaction must be completed for linking in the Asset Master – GRN section.
- Depreciation, CWIP and Capital Ledgers are required.
- The following list of transactions must be completed.
¶ A Straight Line Depreciation (SLD) Report
The Depreciation Calculation Straight Line report equally distributes the depreciation expense across each period of an asset's useful life.
Navigation: Main – Menu ⇢ Transactions ⇢ Finance ⇢ Finance Entries ⇢ Finance ⇢ Select Financial Year ⇢ Show List ⇢ Assets ⇢ Depreciation Calculation Straight Report
- The user must select the Location, As on (Date), Asset Ledger and Asset from the dropdown list.
- The user can select the checkbox for Calculation Based On Capitalisation Date for Addition if required. Click Refresh.
- The Depreciation Calculation (Straight Line) screen displays details such as SL No., Profit Centre, Group, Asset Code, Asset Description, Barcode, Sub Location, Asset Mode, Supplier, Investment Type, Capitalisation Date, Depr. Start Date, Number of shifts, Useful life based on, Useful Life, End Of Asset, Remaining Life, Rate of Depr., Salvage (%), Salvage Value, Qty, Gross- Value after Salvage, Gross Value, Additions, Deletions, Closing Gross Value, Accumulated Depr., Charge for the Year, Closing Depr., OB Net Value, CB Net Value, Invoice Number, Invoice Date, Location, Asset SL. Number Accum. Depr Upto Last Year and Accum Depr Current Year.
- The Quick Export Excel option allows the user to export the report to Excel.
¶ Post Entry
The Post Entry section allows the user to confirm the calculated depreciation value of each asset before posting the expenses on the Journal Voucher (JV).
Navigation: Main – Menu ⇢ Transactions ⇢ Finance ⇢ Finance Entries ⇢ Finance ⇢ Select Financial Year ⇢ Show List ⇢ Assets ⇢ Depreciation Calculation Straight ⇢ Post Entry
- Click Post Entry, the following screen appears.
- Click Refresh, the following message will appear.
- Click OK, the following screen will appear.
- The user must select the appropriate checkbox for asset details.
- The user can select the Select All checkbox, to select all listed transactions, if required.
- Click Save, the following message appears.
- Click Yes, the following message appears.
- Click OK.
¶ Preview Transaction Details
The Preview option allows the user to view and print the listed transaction details if required.
- The user can search for a particular transaction based on the Location, Asset Ledger, Asset and As On Date. Click Refresh.
- Click Preview, the following screen will appear.
- Click Print, to print documents.
- The user can view details in Excel, HTML, Open Office, PDF and Notepad format.
- Click Email, the following screen will appear.
- The user must enter the Subject.
- The user can upload multiple attachments if required.
- The user can delete the uploaded attachments if required.
- The user must select one of the options from Employees, Customers, Sales Rep, Suppliers, Subcontractors or Others.
- Once the user selects the appropriate option, the corresponding Email IDs will appear in the Email Address section.
- The Add Your Message Here section allows the user to add messages.
- Click Send, to send emails.
- Click Add, to add the new email address.
- Click Delete, to remove the selected mail ids.
- Click Settings, the following screen will appear.
- The user must enter details of the Your Existing Mail Server Name, Port (Existing), Change the above Mail Server Name To and Port (New).
- Click Change.
¶ Grid Setting
The Grid Format option allows the user to change or edit the sequence of columns of a depreciation report based on the requirement.
- Click Grid Format, the following screen will appear.
- The Grid Format screen displays details such as the Order Number and Field Description.
- The user can click the upward arrow, to arrange numbers in ascending or descending order.
- The user can enter details of the Width.
- The user can select the appropriate Alignment and Hide details from the dropdown list.
- The user can enter details of the Display/ Index.
- Click Save, the Saved Successfully message will appear as shown below.
- Click OK.
¶ Fields and Actions
The table below describes the field details of the depreciation report.
| Sl. No. | Field Name | Data Type | Validation Logic | Business Logic |
| 1. | Profit Centre | Varchar | This is derived from the Asset Master. | It displays the name of the profit centre. |
| 2. | Group | Varchar | This is derived from the Asset Type. | It displays the asset type or category of the asset. |
| 3. | Asset Code | Varchar | This is derived from the master (Asset). | It displays the code of the asset. |
| 4. | Asset Description | Varchar | This is derived from the master (Asset). | It displays the name of the asset. |
| 5. | Barcode | Varchar | This is derived from either the master (Asset) or Asset Master Cost Distribution. | It displays the barcode of the asset. |
| 6. | Sub Location | Varchar | This is derived from the master (Asset). | It displays the name of the sublocation, if any. |
| 7. | Asset Mode | Varchar | This is derived from the master (Asset). | It displays the mode of the asset, which is either Normal or R&D. |
| 8. | Supplier | Varchar | This is derived from the master (Asset). | It displays the name of the supplier. If more than one GRN exists, it will fetch the details of the most recent entry. |
| 9. | Investment Type | Varchar | This is derived from the master (Asset). | It displays whether the Investment Type is Yes or No. |
| 10. | Capitalization Date | Date | This is derived from the master (Asset). | The capitalisation date of an asset refers to the date on which it becomes eligible for depreciation or when the asset is ready for its intended use, as provided by the user. |
| 11. | Depr. Start Date | Date | Auto Generated | It displays the depreciation start date of assets which is the same as the capitalization date of assets provided by user. |
| 12. | No. of Shifts | Numeric | This is derived from the master (Asset). | Displays the name of the shift during which the asset is used. |
| 13. | Useful Life Based on | Varchar | This is derived from the master (Asset). | It displays the useful life of the asset in years or days. |
| 14. | Useful Life | Numeric | This is derived from the master (Asset). | It displays the period during which an asset will be available for use. |
| 15. | End of Asset | Date | Formula based: End of Asset = Capitalization Date + Useful Life | It displays the end date of the useful life of the asset. |
| 16. | Salvage (%) | Float | This is derived from the Asset perc (%) field of the master (Asset). | It displays the percentage of the salvage. |
| 17. | Salvage Value | Float | Formula based: Salvage Value=Gross Value * Salvage % | It displays the salvage value of an asset the company will receive in exchange for selling or parting out the asset at the end of its useful life. |
| 18. | Remaining Life | Float | Formula Based: Remaining Life = End of Asset-Today's Date | It displays the remaining useful life of the asset. |
| 19. | Rate of Depr.(straight) in % | Float | Formula Based: Dep % = ((100 %-Salvage %)) ÷ (Useful Life) | Displays the percentage of depreciation used in the straight method. |
| 20. | Qty | Float | This is derived from the master (Asset). | It displays the number of assets. |
| 21. | Gross value after Salvage | Float | Formula based: Gross Value after salvage=Gross Value − Salvage Value | It displays the amount after deducting salvage. |
| 22. | Gross Value | Float | Formula based: Gross Value = Closing Gross Value | It displays the value of last year's closing. |
| 23. | Addition | Float | This is derived from the master (Basic Amount of Assets). | It displays the value of the additions made to the asset. |
| 24. | Deletions | Float | Auto Generated | It displays the value of assets after sale of assets. |
| 25. | Closing Gross Value | Float | Formula Based: Closing Gross Value = Gross Value + Addition | It displays the closing gross value that is equal to the Addition value. |
| 26. | Accumulated Depr. | Float | Formula based: Accumulated Depr.= ((Gross Value*Rate of Depr Perc)) ÷ (Days in current year) *(Financial Year – Acquisition Date+1) | It displays the depreciation value of an asset over a year. |
| 27. | Charge for the Year | Float | Formula based: Charge for the Year = (Gross Value * Rate of Depr perc *(Financial – Acquisition Date + 1)) ÷ (Days in Current Year) | It displays the charge for an asset over a year or the depreciation expense associated with that asset for the specific accounting period. |
| 28. | Closing Depr. | Float | Formula Based: Closing Depr = Accumulated Depr + Charge for the year | It displays the final depreciation entry recorded at the end of an accounting period or the end of an asset's useful life. |
| 29. | OB Net Value | Float | Formula Based: OB Net Value = Closing Gross Value – Accumulated Depr. | It displays the opening balance net value of the asset. |
| 30. | CB Net Value | Float | Formula Based: CB Net Value = Closing Gross Value – Closing Depr. | It displays the closing balance net value of the asset. |
| 31. | Invoice Date | Date | This is derived from the master (Asset). | It displays the date of the Invoice. |
| 32. | Location | Varchar | This is derived from the master (Asset). | It displays the name of the location. |
| 33. | Asset SL No. | Varchar | This is derived from the master (Asset). | It displays the serial number of the asset. |
¶ Functional Use Cases
| SL No. | Use Case | Business Scenario | Functional Outcome in ERP |
|---|---|---|---|
| 1 | Calculate Asset Depreciation | The user calculates depreciation for selected fixed assets for a defined period. | The system computes depreciation based on the selected depreciation method and period. |
| 2 | Generate Depreciation Report | The organisation requires a report showing the depreciation details for all assets. | The system generates a detailed report with asset-wise depreciation values. |
| 3 | Preview Depreciation Calculation | The user previews the depreciation report before finalising the posting. | The system displays a preview of the calculated depreciation amounts for verification. |
| 4 | Export Depreciation Report | The user exports the depreciation report for external review or audit purposes. | The system allows exporting the report in Excel, PDF, or other available formats. |
| 5 | Post Depreciation Entry | The user posts the depreciation amount to the general ledger after review. | The system creates journal entries to adjust asset values in the ledger. |
¶ Use Case Scenario
- Click here for a detailed use case scenario.
¶ Transaction Checklist
| Step | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Verify Prerequisites | Ensure that the financial year, asset master, and depreciation settings are configured. |
| 2 | Select Financial Year & Period | Choose the correct financial year and period for depreciation calculation. |
| 3 | Verify Depreciation Method | Verify selected depreciation method (Straight-Line, WDV, or other) for each asset category. |
| 4 | Load Asset Data | Retrieve the list of assets eligible for depreciation in the selected period. |
| 5 | Review Calculation Parameters | Verify depreciation rates, start dates, and applicable rules. |
| 6 | Run Depreciation Calculation | Execute the calculation to compute depreciation amounts. |
| 7 | Preview Calculation Report | Review the calculated depreciation values before posting. |
| 8 | Make Adjustments if Required | Edit or correct any discrepancies before final posting. |
| 9 | Post Depreciation Entry | Post the depreciation amounts to the general ledger. |
| 10 | Generate Final Report | Create a depreciation report for internal review and audit. |
| 11 | Export/Print Report | Export the report in Excel/PDF or print for management/audit purposes. |