Monthly Depreciation Expense System: (Optional)

The menu has been reorganised, with all period and calendar functions now in the menu option: administration>calendar.
The Year End option behaves as previously.

New: The Calendar option are as follows:

Business rules:
Period Expense: This will be a valid value if the previous period is closed, or if it has been calcaulated for the current open period. This value will not appear in a report if it has not been calculated. Standard reports do not need the period expense to be valid for any period, as our system is designed around an open year.
Closure: Current period must be open, and previous period closed. Close Period option will calculate the period expense for the current period before closing.
Open Period: 1. Clears all expense data for later periods. 2. Sets all later periods open.

General Notes:

Warning: This system should not be used while the "Setup rule" is activated. Specifically, all pre-exisiting assets must be added before using the period expense module. Failure to follow this requirement will mean that you will need to recalculate all periods to incorporate the new assets. The software will identify this situation, and force this requirement. Adding Assets acquired in the current year: This is handled as follows: If an asset is added to a "closed" period, all depreciation expense will be added to the first "open" period.

Background: This is an entirely optional extra. There is no need to use month end procedures if you only wish to use the period to date expense reports. Each Asset has an expense recorded for Tax & Depreciation by period. This data is held in a separate table. Period expense may be calculated whenever desired. Since you can make prior adjustments to an asset (unless you prevent this with the appropriate settings) expense will be incremental.

Example: An Asset has a period one expense of $10. This will be stored in the period one "slot" for this asset. If you subsequently amend the asset after you have closed off period one, any change will be carried forward into the next period. So if in Period 2 the expense was $12, and total YTD expense was $24, the period 2 expense would be $14, being the $2 adjustment for period 1 + $12 period 2. An example of this would be changing depreciation rates mid year. You could "recalculate" the period one "slot" if you like, and repost the period one figures. Similarly, Groups, Branches and Departments will record depreciation expense in the relevent Periods.

If you move an asset from one cost centre to another, the group expense will remain in the cost centre at the time of calculation. Cost center period expense is stored separately from asset period expense.