Depreciation plan process involves creating depreciation plans which will calculate the forecasted depreciation for all depreciable assets acquired and also the ones to be acquired in the future. A deprecation plan can be created for several years into the future and will be based on the deprecation method attached to each book in the object. After creating the depreciation plan, the depreciation plan report can be generated and the report will contain information relating to the planned depreciation of selected objects for a selected period of time.
Depreciation plans are created by entering the appropriate information in the Create Depreciation Plan dialog.
The depreciation base is the source of the depreciation information in a depreciation plan. This is automatically displayed in the Depreciation Base field in the Depreciation Plan window when a depreciation plan is created. (Make sure Table View is activated.) The Depreciation Base field can have three possible values. They are Plan, Actual-Proposal and Actual-Import.
Plan: If an object/object group included in a depreciation plan does not have any accumulated depreciation or depreciation already calculated in a posted depreciation proposal for a particular period to which the plan applies, the depreciation for the object/object group for that period will be determined in the plan itself. In this circumstance, the depreciation base of the depreciation information relating to the object/object group and the period will be Plan.
Actual-Proposal: When depreciation for a particular period is already calculated in a posted depreciation proposal for an object/object group included in a depreciation plan, the depreciation amount for the period for that object/object group will be copied from the proposal to the plan. In this circumstance, the depreciation base of the depreciation information relating to the object/object group and the period will be Actual-Proposal.
Actual-Import: If any accumulated depreciation is entered for a particular period at the time of importing an object, the accumulated depreciation amount will be copied to any depreciation plan that includes the imported object and applies to that period. In this circumstance, the depreciation base of the depreciation information relating to the object and the period will be Actual-Import.
If a depreciation plan includes an object for which accumulated depreciation exists for a particular period(s) to which the plan applies, the depreciation plan functionality would work as illustrated by the following example:
A depreciation plan includes the imported object A for which accumulated depreciation of 150 EUR has been entered for year 2000, period 1 at the time of importing. The depreciation plan applies to the time period from year 2000, period 1 until year 2000, period 2. The accumulated depreciation of 150 EUR for object A will be copied from imports to the plan for period 1 and the depreciation base for object A, year 2000, period 1 will be Actual-Imports. The depreciation for year 2000, period 2 will be calculated using the depreciation plan functionality and the depreciation base for object A, year 2000, period 2 will be Plan. (Refer Depreciation Base for further details).
At the time a depreciation plan is created, depreciation may have been already calculated in a depreciation proposal for the whole or a part of the time period to which the plan applies to, for one or more of the objects included in the plan. The following scenarios illustrate how the depreciation plan functionality works in such circumstances:
Scenario 1 - Where a posted depreciation proposal exists for a part of the time period to which the depreciation plan applies
Object A has been included in a posted depreciation proposal which applies to the time period until year 2000, period 2. If object A is included in a depreciation plan which applies to the time period from year 2000, period 1 until year 2000, period 12, the depreciation information for year 2000, periods 1 and 2 will be copied to the depreciation plan from the depreciation proposal and the depreciation base for those two periods will be Actual-Proposal. The depreciation for the time period from year 2000, period 3 until year 2000, period 12 will be calculated in the depreciation plan and the depreciation base for that time period will be Plan (refer Depreciation Base).
Scenario 2 - Where a depreciation proposal that is not posted exists for a part of the time period to which the depreciation plan applies
Object A has been included in a depreciation proposal of the status Created which applies to the time period until year 2000, period 2. If object A is included in a depreciation plan which applies to the time period from year 2000, period 1 until year 2000, period 12, no information will be copied to the depreciation plan from the depreciation proposal since the depreciation proposal is not posted. A warning message would appear at the time of creating the depreciation plan to inform that not handled proposal details exist for the book.
When a depreciation plan includes an object which has been sold before the last period of the time period to which the plan applies, the depreciation information included in the plan will be as illustrated by the following scenarios:
Scenario 1 - Where an object has been included in a depreciation proposal
Object A was acquired on the 1st of January 2000. It has been included in a depreciation proposal of the status Posted which applies to the period until year 2000, period 4 and was sold on the 30th of April 2000. If object A is included in depreciation plan 1 which applies to the time period from year 2000, period 1 until year 2000, period 12, no depreciation will be calculated in the plan for any period after year 2000, period 4. However, the depreciation information that exists up to year 2000, period 4 in the depreciation proposal will be copied to the depreciation plan. The depreciation base of the plan for those four periods will be Actual Proposal in the Depreciation Plan window (refer Depreciation Base).
Scenario 2 - Where an object has not been included in a depreciation proposal
Object B was acquired on the 1st of January 2000 and sold on the 30th of April 2000. It has not been included in any depreciation proposal. If object B is included in a depreciation plan which applies to the time period from year 2000, period 1 until year 2000, period 12, no depreciation will be calculated in the plan for object B.
Scenario 3 - Where accumulated depreciation exists for an object
Object C is an imported object. Accumulated depreciation of 150 EUR exists for the object for year 2000, period 2. Object C was sold on the 30th of April 2000. It has not been included in any depreciation proposal. If object C is included in a depreciation plan which applies to the time period from year 2000, period 1 until year 2000, period 12, the accumulated depreciation of $150 for year 2000, period 2 will be automatically entered in the depreciation plan. The depreciation base will be Actual Imports for period 2 in the Depreciation Plan window . The depreciation base for the rest of the periods in the plan will be Plan (refer Depreciation Base).
The same treatment as illustrated above would apply when an object is scrapped or replaced instead of sold.
You can set up basic data to allow the system to automatically simulate postings for all depreciation plans connected to a particular book once they are created. You can also specify whether postings should be simulated at the time of creating a depreciation plan or simulate postings after a depreciation plan is created. The purpose of simulating postings is to check how the depreciation would be posted based on the current posting rules for FAP5 and FAP6 posting types. The Simulated Posting Details window is used to view the simulated postings. No vouchers are created as a result of this operation.
It is possible to cancel a depreciation plan of the status Created or PostingsSimulated or PostingsBatchSimulated.