Depreciate Fixed Assets
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      3. Depreciate Fixed Assets

      Calculate and Post Depreciation Entries 

      Overview:  

      • Learn how to calculate and post depreciation entries 

      Note: You can post depreciation manually using the fixed asset G/L journal or fixed asset journal.  

      Why calculate and post depreciation? 

      Calculating and posting depreciation in Wiise ensures accurate allocation of a fixed asset's cost over its useful life, providing a clear representation of its current value. 

      How to calculate and post depreciation? 

      There are two ways to post depreciation. You can use the Calculate Depreciation batch job to automatically post depreciation or enter the depreciation manually in the Fixed Asset G/L Journal, if you are maintaining fixed assets records manually.  

      Here are the steps: 

      1. Run the Calculate Depreciation batch job 

      1. Search for Calculate Depreciation on the top right-hand corner of the page. Select the related task. The request page displays.  
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      2. Complete the required fields and hover over any field for a brief description. 
        1. Depreciation Book: Select the related depreciation book  
        2. FA Posting Date: This date is used for recording the depreciation entry in the Fixed Asset Ledger.  
        3. Posting Date: This is the date for recording depreciation in the General Ledger. 
        4. Document No: Provide a unique document number 
        5. Posting Description: This can be the same description as the Document Number, or you can expand on the explanation.   
        6. Filter your fixed asset by a specific asset, class or subclass.  
        7. Select OK to save the process.  

          Note: The batch job calculates the depreciation and creates lines in the Fixed Asset G/L journal.  
        8. A prompt appears confirming the depreciation calculation. Select Yes to open the Fixed Asset G/L journal now, or No to open it manually later. 
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        9. On the Fixed Asset G/L Journal page, the No. of Depreciation Days field shows the number of days depreciation was calculated. 
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        10. Review and confirm the fields.  
        11. Select Home. Then select Post. Select Post from the drop-down menu to record the depreciation in both the fixed asset subledger and general ledger.  
        12. A prompt appears to confirm if you want to post the journal lines. Select Yes to continue. 

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        13. A prompt appears when the journal lines are successfully posted. Select OK. 
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      3. You’ve calculated a depreciation for your fixed asset using the Calculated Depreciation batch job.  

      Note: The Calculate Depreciation batch job automatically calculates depreciation based on the settings you define on the request page. Assets that are sold, blocked, inactive, or use the manual depreciation method are excluded. The batch job creates journal lines for you to review and post. 

      Note: If you use multiple depreciation books, run the batch job separately for each one.

      2. Post Depreciation from Fixed Asset G/L journal

      Here are the steps to post depreciation manually from the fixed asset G/L journal. 

      1. Search for Fixed Asset G/L Journal from the top right-hand corner of the page. Select the related task. The page displays.  
      2. Set up a new journal line row. Populate the fields as necessary.  
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        1. Posting Date: Enter the transaction date 
        2. Document No.: Provide a unique document number.  
        3. Account Type: Select Fixed Asset 
        4. Account No: Select the fixed asset you’re depreciating 
        5. FA Posting Type field: Select Depreciation. 
        6. Amount: Enter depreciation amount. Enter with a minus sign for credits.  
        7. Fill in the remaining fields as required. Then, review and verify to ensure all information you’ve entered is correct.  
      3. Select Home. Then, select Insert FA Bal. Account. A second journal line is created for the balancing account used in allocation posting. 
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        Note: Use the Test Report option to confirm the journal accuracy before you post. You can see potential errors and warnings that prevent you from posting the journal.  
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        1. Select Home. Then, select Post. From the drop-down menu, select Post to finalise the transaction and post the journal. The depreciation is recorded both in the FA subledger and general ledger.  
        2. A prompt display confirming if you want to post the journal lines. Select Yes to continue. 
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        3. A prompt appears when the journal lines are successfully posted. Select OK. 
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      4. Go to your fixed asset card to view that the Book Value field is updated on the Depreciation Book section.  
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      5. You’ve posted the depreciation manually from the fixed asset G/L journal.  

      What’s next? 

      Find out how to dispose an asset.

      If you have any questions, please reach out to support@wiise.com