Period Close and Beginning Depreciation Fields

Both the Period Close fields and the Beginning Depreciation fields protect your depreciation calculations. The system does not allow you to calculate depreciation prior to the Beginning Date or the Period Close Date. (To do so, you must first reset depreciation back to the Placed-in-Service date.)

Please note the following rules for the Period Close and Beginning Depreciation fields:

• You cannot conduct a Period Close before the date in the Beginning Date field. (This is because you cannot calculate depreciation prior to the date in the Beginning Date field.)

• You can conduct a Period Close on the same date as the date in the Beginning Date field. If you do so, then all three sets of depreciation fields (the Beginning Depreciation fields, the Period Close fields, and the Current Depreciation fields) will contain the same information.

• When you conduct a Period Close after the Beginning Date, the system copies the depreciation amounts from the Current Depreciation fields into the Period Close fields. The information in the Beginning Depreciation fields remains the same. The system does not recalculate an adjustment.

• The system calculates adjustments to depreciation based on the information in the Beginning Depreciation fields. You can run a Depreciation Adjustment report to view the difference between depreciation calculated by the system and the amounts entered in the Beginning Depreciation fields.