The system calculates depreciation from one of the four following dates:
- Placed-in-service date
- Beginning date
- Period close date
- Current through date
The placed-in-service date is self-explanatory. The beginning date is the date through which depreciation was already calculated for the asset at the time you entered it in the system. The period close date is the date on which depreciation was last saved in the database. The current through date is the date through which depreciation was last calculated by the system.
The system uses whichever of these four dates immediately precedes the new date you enter for calculations (the depreciation calculation date), as illustrated below.
Monthly Depreciation Run for Next Period
----------|------------------|------------------|------------------|------------------|-- Depr. this run --|
|
8/2019 |
10/2020 |
12/2020 |
01/2021 |
02/2021 |
03/2021 |
|
Placed-in-Service |
Beginning Date |
Period Close |
|
Through Date |
Depr. Calc. Date |
|
|
|
|
|
|----------------------à |
|
In the above example, the user is calculating forward from 2/2021 to 3/2021. Thus, depreciation this run is for the 1-month period between the two dates.
Depreciation Run for Earlier Period
----------|------------------|------------------|-- Depr. this run --|------------------|------------------|
|
8/2019 |
10/2020 |
12/2020 |
01/2021 |
02/2021 |
03/2021 |
|
Placed-in-Service |
Beginning Date |
Period Close |
Depr. Calc. Date |
Through Date |
|
|
|
|
|
ß--------------------------| |
|
|
In this example, the user is calculating depreciation for a period prior to the current Through Date of 2/2021. The system looks for a starting point for the calculations and determines that the latest date in time is the Period Close on 12/2020. Thus, depreciation this run is for the 1-month period from 12/2020 to 1/2021. If no period close existed, the system’s starting point for calculations would have been the Beginning Date of 10/2020, and depreciation this run would have been for the 3-month period between 10/2020 and 1/2021.
Note that in either case the depreciation calculation date becomes the new through date for the asset or assets being depreciated.