Rerunning Depreciation Processing

After you run depreciation for an asset item, if you change any information on the GL Cost, GL Book, or Additional Books tab in the Equipment hub that affects the depreciation calculation, you can rerun depreciation.

For example, you may have added an additional acquisition cost in the Acquisition Cost grid on the GL Cost tab, reduced or increased the number of useful life in years on the GL Book tab, or entered an additional cost on the Additional Books tab.

After you make a change in your most current accounting period that affects the depreciation calculation for an asset item, rerun depreciation in the most current period. DPS creates one adjusting journal entry in the most current accounting period that combines the adjusting depreciation amounts for the current period and for all prior periods for which the new depreciation calculation applies. Any costs that you add to the Acquisition Cost grid that have the Life of Asset check box selected apply to prior periods. A change that you make to the useful life in years also applies to prior periods, as well as any changes that you make to the Additional Cost field on the Additional Books tab.

When the adjusting journal entry that is made in the most current period is added to the previously posted depreciation expense and accumulated depreciation amounts for the asset item, these account balances are now correct in the most current period, per the changes made to the depreciation calculation. No journal entries are actually made for the depreciation adjustment in any prior periods; the whole correcting adjustment is made for all the affected periods in the current period. Going forward from the next period, DPS uses the changed information to calculate depreciation.

If you rerun depreciation processing in a period in which you already ran it and you did not change any information on the GL Cost, GL Book, or Additional Books tab in the Equipment hub that would change the depreciation calculation, you receive a message saying that no depreciation entries were generated. No depreciation is processed.