Capital Asset Management Depreciation Process
The Capital Asset Management depreciation process calculates and posts depreciation expense entries to the General Ledger and adjusts the affected asset records. Two methods can be used for the depreciation calculation: straight line, and salvage value. Each asset is depreciated from its asset depreciation date and is depreciated evenly over the asset's useful life.
The asset depreciation date for full year assets is set to 7/1 of the fiscal year the asset was placed in service, half year assets depreciation date is set to 1/1 of the fiscal year they are placed in service.
Every capital asset is assigned an asset type code. The asset type has an associated description, useful life, moving code, and required building code.
The federally-owned portion of an asset is excluded from the depreciation calculation as determined by the object code associated with the payment. In addition, assets with a pending retirement are not eligible for depreciation. Depreciation is posted to the campus or organization plant fund chart and account associated with the payment account.
Depreciation is calculated for each payment method and can be run monthly, quarterly, semi-annually or annually as defined by the DEPRECIATION_PERIOD parameter.
The fiscal period in which depreciation runs must be a multiple of the DEPRECIATION_PERIOD. For example, if the DEPRECIATION_PERIOD is set to 3 (run quarterly), the depreciation run date must be a date in the accounting period 3, 6, 9 or 12.
Overview