Depreciation Adjustment Report: Report Columns
These standard columns appear in the Depreciation Adjustment report and need no explanation:
System Number
Extension
Description (first ten characters)
[Placed] In-Service Date
Estimated Life (in years and months)
Depreciation Method
Key Code
The following guidelines provide detail on the nonstandard columns that appear on the Depreciation Adjustment report.
| Column | Notes |
|---|---|
| Creation Code | This column shows the asset’s creation code: O Original Asset, D Disposed Asset, etc. |
| Depreciable Basis | This column shows the asset's depreciable basis as calculated by the system. |
| Beginning Year to Date Depreciation | This column shows the amount displayed in the Beginning Year to Date field in Asset Detail. Beginning Year-to-Date Depreciation includes the 168 Allowance and Section 179 expense, when applicable, if you selected Yes in the Include Section 168 Allowance and Section 179 in Expense field in the Edit Company window. The Calculation Assumptions section on the last page of the report indicates whether you selected Yes or No in the Edit Company window. |
| Beginning Accumulated Depreciation | This column shows the amount displayed in the Beginning Accumulated Depreciation field in Asset Detail. Beginning Accumulated Depreciation includes the 168 Allowance and Section 179 expense, when applicable, if you selected Yes in the Include Section 168 Allowance and Section 179 in Expense field in the Edit Company window. The Calculation Assumptions section on the last page of the report indicates whether you selected Yes or No in the Edit Company window. |
| Calculated Total Accumulated Depreciation |
This column shows the amount the system calculated as the correct depreciation from the date you placed the asset in service through the date entered in Asset Detail as the beginning date. The beginning date appears in the next column. Calculated Total Accumulated Depreciation includes the additional 168 Allowance and Section 179 expense, when applicable to the depreciation method, if you selected Yes in the Include Section 168 Allowance and Section 179 in Expense field in the Edit Company window. The Calculation Assumptions section on the last page of the report indicates whether you selected Yes or No in the Edit Company window. |
| Begin Date | This column shows the date entered as the Beginning Date field in Asset Detail. |
| Over (Under) Depreciated |
This column shows the difference between the calculated total accumulated depreciation and the user-entered beginning accumulated depreciation (or application-entered information after making a critical depreciation change). |
In most cases, a negative adjustment amount shows that you have not taken enough depreciation for the asset as of the beginning date entered. A positive adjustment amount shows that you have taken too much depreciation as of the beginning date. However, in the case of negative acquisition values entered for credits and rebates, a positive number shows you have not taken enough depreciation; a negative number shows you have taken too much depreciation.
If you've taken more beginning depreciation for an asset than the system calculates as correct, the system continues to take as much depreciation as you're entitled to each year. However, it stops taking depreciation when the asset is fully depreciated, which will be sometime prior to the end of its estimated life.
If you've taken less beginning depreciation than the system calculates as correct, the system by default does nothing to adjust for the difference and the asset will never be fully depreciated (unless you are using a declining-balance method of depreciation that switches to straight-line). Through Book Overrides, you can request that the system adjust for the difference and take the remaining depreciation expense immediately or during the postrecovery period. For instructions, see Book Overrides tab.