¶ Purpose
The Depreciation Calculation report automatically calculates the depreciation value of the asset as per WDV method.
¶ Prerequisites
The following transactions 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 Written Down Value (WDV) Depreciation Report
The Written Down Value (WDV) depreciation report calculates depreciation value based on an asset percentage of the original cost of the asset each period.
Formula of WDV = Original Cost of Asset * Asset Percentage (Depreciation %)
Navigation: Main – Menu ⇢ Transactions ⇢ Finance ⇢ Finance Entries ⇢ Finance ⇢ Select Financial Year ⇢ Show List ⇢ Assets ⇢ Depreciation Calculation (WDV) 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 (WDV) screen displays details such as SL No., Profit Center, Group, Asset Code, Asset Description, Bar Code, Sub Location, Asset Mode, Supplier, Investment Type, Capitalization 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 Date, Location and Asset SL. Number.
- 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 (WDV) Report ⇢ 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.
¶ 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 capitalization 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, 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 of WDV = Original Cost of Asset * Asset Percentage (Depreciation %) | 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 Depreciation Value | The user calculates the depreciation value of fixed assets using the Written Down Value (WDV) method. | The system automatically calculates depreciation based on the asset’s original cost and defined depreciation percentage. |
| 2 | View Depreciation Report | The user views the WDV Depreciation Calculation report for all registered assets. | The system displays detailed depreciation data such as capitalization date, useful life, accumulated depreciation, and closing values. |
| 3 | Filter Depreciation Data | The user filters depreciation details by selecting Location, Date, Asset Ledger, or Asset. | The system displays filtered asset depreciation details based on the user’s selection. |
| 4 | Calculate Based on Capitalization Date | The user enables the checkbox to calculate depreciation based on capitalization date. | The system adjusts the depreciation calculation according to the capitalization date for accurate reporting. |
| 5 | Export Depreciation Report | The user exports the depreciation calculation report for financial review and audit purposes. | The system allows exporting the report to Excel using the Quick Export Excel option. |
| 6 | Post Depreciation Entry | The user confirms and posts the calculated depreciation entries to the Journal Voucher (JV). | The system updates financial records and posts the depreciation expense automatically. |
| 7 | Select All Asset Records | The user selects all asset records at once for posting depreciation entries. | The system applies the posting action to all selected assets in a single operation. |
| 8 | Confirm Depreciation Posting | The user verifies and confirms posting messages during the Post Entry process. | The system displays confirmation messages and saves the depreciation postings successfully. |
¶ Use Case Scenario
- Click here for a detailed use case scenario.
¶ Transaction Checklist
| Steps | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Verify asset ledger availability | Ensure the required asset ledgers are created and active before initiating depreciation calculation. |
| 2 | Select location and financial period | Confirm that the correct location and financial period are selected for accurate depreciation computation. |
| 3 | Review asset details | Validate gross value, capitalisation date, and accumulated depreciation for the selected assets. |
| 4 | Verify depreciation output | Check depreciation for the year, accumulated depreciation, and net value for correctness. |
| 5 | Post depreciation entries | Post the calculated depreciation into the financial ledger to maintain compliance. |
| 6 | Generate journal voucher | Ensure the journal voucher is generated and properly linked to the depreciation entry. |
| 7 | Review reports | Run depreciation and asset reports to validate that entries are reflected correctly in accounts. |