Depreciation Process

The depreciation process begins with creating a selection template (FADPUS) that tells the system which assets to select for depreciation. On the template, you may choose to depreciate based on Primary Class, Secondary Class, Depreciation types (i.e., SL, DDB, SYD), Frequency of depreciation, Asset ID, GL Asset Account key and Object code, and JL Account key and Object code.

When the system runs the depreciation process, the FAUPAS page will be accessed to see if the selected assets should be depreciated. If the assets that are being selected have already been depreciated (according to frequency), the process will not depreciate that asset.

Reporting and Distributing Depreciation

After the selection template is created, run the report of selected assets to verify that the correct assets have been selected (FADPRS). The reporting and distributing functions look and work the same. The only difference is that the report is a test run, while the distribution is the real thing. The printed report describes the assets selected, the depreciation amounts, and the GL posting process. Verify this information is correct before distributing the selection.

To distribute, enter the mask FADPDS. The report will look exactly the same as in the previous step, but depreciation has now been posted to the GL.

If needed, a distribution may be undone using FAUTUN. However, this only does an undo to the FA database. A separate undo must be done for GL (using GLUTSUUN).

Depreciation Posting Process

Posting of depreciation occurs when the distribution function (FADPDS) is performed. The first process that BusinessPlus undertakes is to read the subsystem-posting interface in GLUTSPSI. GLUTSPSI maps out the method that tells the system how to post these transactions.

Once GLUTSPSI reads the depreciation expense account number from fa_depr (FAUPAS, Dep tab) for each asset, it will post to that account. Likewise, GLUTSPSI will read the posting code from the same page in FAUPAS, and post to the accumulated depreciation account.

The Depreciation tab illustrates where account numbers and posting codes are pulled from. Each posting code will have a description that will tell you which code to use. For example, Post Code 1 will have a description of "Equipment." Then you only have to know what type of asset you are dealing with to choose the correct code. The depreciation expense account number must be entered on the bottom of this page. Once this information has been entered, the rest of the process is handled by the system.