1. Overview

The Depreciation module allows you to:

• Organize depreciable equipment and assets into groups.
• Create and maintain depreciation records.
• Calculate one period of depreciation.
• Create an unposted depreciation journal entry.
• Review the journal entry before posting it to the General Ledger.
• Roll back an eligible depreciation cycle when it was created incorrectly.

Important: The Post Depreciation action creates a journal and updates the depreciation schedule. It does not complete the final General Ledger posting. You must open Journal Entry, review the journal, and choose to post the Journal Entry.

2. Recommended Accounting Setup

Before processing depreciation, confirm the appropriate accounts with your accounting department.

A typical depreciation entry is:

The Depreciation page uses the account entered in Debit Account Number for the debit line and the account entered in Credit Account Number for the credit line.

Review these accounts carefully before generating the journal. Incorrect setup will cause depreciation to post to the wrong accounts.

3. Set Up Depreciation Groups

Depreciation groups allow related items to be maintained and processed together. Common examples include:

• Rental Equipment
• Company Vehicles
• Shop Equipment
• Office Equipment
• Buildings

A separate depreciation journal is created for each selected group.

Create a Group

1. Open Accounting.
2. Open Depreciation Groups.
3. Select + Group.
4. Enter a unique Group Name.
5. Select Save.

The Group Name is required, can contain up to 50 characters, and cannot duplicate an existing group name.

Search for a Group

1. Enter all or part of the name in Search by Group Name.
2. Select the Search button.
3. Review the matching groups.

Group Actions

Open the Actions menu next to a group to access:

• Edit: Rename the group.
• Depreciation Detail: Open the Depreciation page for that group.
• Delete: Delete the group.

Rename a Group

1. Open the group’s Actions menu.
2. Select Edit.
3. Enter the new name.
4. Select Save.

Renaming a group also changes the group name on the depreciation records assigned to it. The new name cannot already be in use.

Delete a Group

A group cannot be deleted while depreciation records are assigned to it. Update, move, or delete those records before deleting the group.

4. Understanding the Depreciation Page

Open a group’s Actions menu and select Depreciation Detail.

The page contains:

1. The selected Depreciation Group.
2. Fields for creating or editing a depreciation record.
3. A list of the group’s existing depreciation records.
4. Actions for adding, updating, deleting, rolling back, and processing depreciation.

Main Actions

Depreciation List

The depreciation list includes:

• Serial Number or Asset
• Depreciation Group
• Method
• Manual Amount
• Starting Value
• Residual Value
• Next Book Value
• Total Months
• Remaining Months
• Credit Account
• Debit Account
• Created and changed information
• Last depreciation date
• Last depreciation user
• Last depreciation amount

Inactive records appear in red. Records with zero Remaining Months appear in yellow.

Select Hide Inactive to hide inactive and completed records from the list.

5. Create a New Depreciation Record

Step 1: Select the Group

Confirm that the correct Depreciation Group is selected.

A group must be selected before you can add a depreciation record.

Step 2: Identify the Item

Enter either:

• A Serial Number for an equipment record, or
• An Asset name or number for an asset that is not identified by an equipment serial number.

For equipment, you can:

• Select the Search button to find the equipment.
• Select the Information button to view equipment information.

The system does not allow more than one depreciation setup for the same Serial Number or Asset.

Step 3: Select Branch and Department

If your company uses GL Branch/Department accounting, select the appropriate Branch/Department.

Depending on company configuration, Branch/Department may be required. The system validates that the selected combination is valid.

Step 4: Select the Depreciation Method

Straight Line

For Straight Line depreciation, the periodic amount is calculated using:

 Current Net Book Value minus Residual Value, divided by Remaining Months 

The calculated amount is rounded to two decimal places.

Manual

For Manual depreciation, enter the amount to use for each cycle in Manual Amount.

The Manual Amount field is only available when the Manual method is selected.

Step 5: Complete the Values

The page may also display the calculated Straight Line amount and the equipment inventory account.

Step 6: Add the Record

1. Review the information.
2. Select Depreciation Detail / Add.
3. Confirm that the record appears in the list.

6. Update an Existing Depreciation Record

1. Open the appropriate depreciation group.
2. Locate the item in the depreciation list.
3. Select the row.
4. Change the required information.
5. Select Update.
6. Confirm that the updated values appear in the list.

You can maintain information such as:

• Depreciation Group
• Serial Number or Asset
• Branch/Department
• Depreciation Method
• Manual Amount
• Starting Value
• Residual Value
• Next Book Value
• Total Months
• Remaining Months
• Debit and Credit Accounts
• Inactive status

If you change the Serial Number or Asset identifier, the replacement identifier cannot already have another depreciation setup.

Inactivate Instead of Delete

Select Inactive when an item should no longer be included in depreciation processing but its setup should remain available.

Before deleting a record, consider whether setting it to inactive is more appropriate for your accounting history.

7. Create the Depreciation Journal

Step 1: Review the Group

Before creating the journal, confirm:

• You are in the correct group.
• All expected records are present.
• Inactive records are not being processed.
• Completed records have zero Remaining Months.
• Next Book Value and Residual Value are correct.
• Remaining Months are correct.
• Debit and Credit Accounts are correct.
• Branch/Department values are correct, when applicable.
• Manual amounts are correct for Manual records.

Processing note: Each depreciation run advances eligible records by one period. It reduces Remaining Months by one and reduces Net Book Value by the depreciation amount.

Step 2: Select Post Depreciation

Select Post Depreciation at the top of the page.

The posting window contains:

• Journal Name
• Effective Date
• Account Field
• Journal Source
• Sort Detail By
• Comments

Step 3: Enter the Journal Information

Journal Name

Enter a unique and meaningful Journal Name, such as:

• DEPR-2026-01
• RENTAL-DEPR-JAN26
• VEHICLE-DEPR-0126

The Journal Name:

• Is required.
• Can contain up to 50 characters.
• Cannot already exist.

Important: A Journal Name cannot be renamed after the journal is created. If an unposted journal is created with the wrong name, it must be deleted and recreated after the related depreciation schedule is rolled back.

Effective Date

Select the accounting date for the depreciation period.

For example, January depreciation would normally use the applicable January month-end date, based on your company’s accounting policy.

The date must fall within the company’s permitted accounting date range.

Account Field

Select the appropriate Account Field based on company policy.

Journal Source

Enter a source such as DEPRECIATION, or use your company’s standard journal source.

Sort Detail By

Select the preferred detail sort order, if applicable.

Comments

Enter a useful description, such as:

January 2026 monthly depreciation – Rental Equipment

Step 4: Create the Journal

1. Review the journal information.
2. Select Post.
3. Wait for the progress indicator to finish.
4. Record the Journal Name so you can locate it on the Journal Entry page.

The process creates:

• A journal header.
• A credit line using each record’s Credit Account.
• An equal debit line using each record’s Debit Account.
• Equipment or asset descriptions on the journal details.
• Branch/Department values when enabled.

The process also updates each eligible depreciation record’s:

• Next Book Value
• Remaining Months
• Last Updated date
• Last Updated By
• Last Updated Amount

Important: Do not run the same group again until you have reviewed the generated journal. Running it again processes another depreciation period.

At this point, the depreciation schedule has been updated, but the journal has not yet been posted to the General Ledger.

8. Review the Journal in Journal Entry

1. Return to Accounting.
2. Open Journal Entry.
3. Enter the Journal Name in Search by Journal Entry Name.
4. If necessary, set the Status filter to show unposted journals.
5. Open the journal’s Actions menu.
6. Select Edit to review and, if necessary, correct the unposted journal.

The Journal Entry list displays:

• Journal Entry Name
• Effective Date
• Source
• Account Field
• Created On

Review the Journal Header

Verify:

• Journal Name
• Effective Date
• Source
• Account Field
• Comments

Review the Journal Details

Confirm that:

1. Every expected asset or equipment item is included.
2. The Debit Account is the correct depreciation expense account.
3. The Credit Account is the correct accumulated depreciation account.
4. Each debit has an equal credit.
5. Descriptions identify the correct equipment or asset.
6. Control Numbers are correct where applicable.
7. Branch and Department are correct.
8. No record appears more than once unexpectedly.
9. Debit and Credit totals are equal.
10. The journal Balance is zero.

The Journal Entry page displays separate Debit, Credit, and Balance totals.

A valid journal should have a date, a meaningful name or description, correct accounts, and equal debit and credit totals.

9. Post the Journal to the General Ledger

Once the journal has been reviewed:

1. Confirm the journal Balance is zero.
2. Confirm the Effective Date is correct.
3. Select Post to General Ledger.
4. Confirm the posting when prompted.
5. Wait for the posting process to finish.
6. Verify that the journal now shows as posted.

The Post to General Ledger button may be unavailable when:

• The journal is already posted.
• The page is in View mode.
• The journal has no detail.
• Required detail information is missing.
• The Effective Date is not valid.
• The journal is still being updated or validated.

10. Roll Back Depreciation

Use Rollback Depreciation when a depreciation journal was created incorrectly and the depreciation schedule must be restored before creating a replacement journal.

Examples include:

• The wrong Effective Date was entered.
• The wrong Journal Name was used.
• Debit or Credit Accounts were configured incorrectly.
• The wrong group was processed.
• Depreciation was run twice.

Important Rollback Behavior

Rollback:

• Applies only to the Straight Line method.
• Works at the Depreciation Group level.
• Can affect multiple eligible active records in the selected group.
• Adds one period back to Remaining Months.
• Increases Net Book Value using the rollback calculation.

Warning: Rollback does not reverse or delete the Journal Entry. The depreciation schedule and the journal must be corrected separately.

If the Journal Has Not Been Posted

1. Open Journal Entry.
2. Search for the incorrect journal.
3. Confirm that it is unposted.
4. Delete the unposted journal using its Actions menu.
5. Return to Depreciation.
6. Open the affected Depreciation Group.
7. Select Rollback Depreciation.
8. Confirm the rollback.
9. Review the restored Net Book Value and Remaining Months.
10. Correct the depreciation setup.
11. Create a new depreciation journal.
12. Review and post the replacement journal.

If the Journal Has Already Been Posted

Do not use Rollback by itself. Rollback changes the depreciation schedule but does not reverse the General Ledger transaction.

1. Review the posted journal with your accounting supervisor.
2. Create or use the appropriate journal reversal process.
3. Post the reversing journal as directed by your accounting procedures.
4. Return to Depreciation and roll back the schedule.
5. Correct the depreciation setup.
6. Generate and review a replacement depreciation journal.

The Journal Entry module provides Reverse Journal Entry for creating a reversal of a posted journal. The reversal must still be reviewed and posted.

Contact your accounting administrator before attempting to correct Manual depreciation or other exceptional situations.

11. Monthly Processing Checklist

Before Processing

• ☐ Correct Depreciation Group selected
• ☐ All expected records are present
• ☐ Inactive items are excluded
• ☐ Starting and Net Book Values are correct
• ☐ Residual Values are correct
• ☐ Remaining Months are correct
• ☐ Manual amounts are correct
• ☐ Debit Accounts are correct
• ☐ Credit Accounts are correct
• ☐ Branch/Department values are correct

Create the Journal

• ☐ Select Post Depreciation
• ☐ Enter a unique Journal Name
• ☐ Enter the correct Effective Date
• ☐ Review Source, Account Field, and Comments
• ☐ Select Post only once
• ☐ Record the Journal Name

Review and Finalize

• ☐ Open Journal Entry
• ☐ Search for the generated journal
• ☐ Open the journal in Edit mode
• ☐ Review every account and amount
• ☐ Confirm debits equal credits
• ☐ Confirm Balance is zero
• ☐ Select Post to General Ledger
• ☐ Confirm the journal shows as posted

12. Troubleshooting

No Depreciation Groups Appear

Open Depreciation Groups and create the required groups before adding depreciation records.

The Add Button Is Disabled

Confirm that:

• A Depreciation Group is selected.
• A Serial Number or Asset has been entered.
• You are not in View mode.

Post Depreciation Is Disabled

The button is disabled when the displayed depreciation list contains no records.

The Journal Name Already Exists

Enter a different Journal Name. Journal names must be unique.

The Journal Does Not Appear in Journal Entry

• Search using the exact Journal Name.
• Change the Status filter to include unposted journals.
• Confirm that the Depreciation posting process completed successfully.

Post to General Ledger Is Disabled

Check for:

• An invalid Effective Date
• Missing journal details
• Missing required detail information
• An already-posted journal
• View mode instead of Edit mode
• A journal still being updated or validated

The Accounts Are Incorrect

Do not post the journal. Delete the unposted journal, roll back depreciation, correct the Debit and Credit Accounts on the depreciation records, and generate a replacement journal.