AptaFund currently supports the straight-line depreciation method with a full month convention.
The depreciation process depreciates all accepted capital assets with their asset items. You can't exclude individual assets or asset items from the process.
Assets or asset items in any state other than Accepted are not included in depreciation.
Assets are depreciated based on the In Service or Acquisition dates, as specified for each asset when it was accepted.
Depreciation creates a record in the History tab for each asset.
The depreciation calculation takes into account assets that are acquired in the middle of a fiscal period using a full month convention. The calculation is based on an asset’s In-Service date.
Depreciation can be run annually, quarterly, or monthly, and it applies to all assets.
The frequency affects the depreciation transactions written to the general ledger for capital assets and determines how many times the depreciation process must be run. For example, if the frequency is set for monthly and it's the end of the year and no depreciation has been run, you will need to select the command 12 times. If it is set for yearly, the process can only be run once.
Set the depreciation frequency in Capital Assets Configuration.
Important: Do not change the depreciation frequency after you've run depreciation in the accounting cycle. If you change the frequency after depreciation has been run during an accounting cycle, you won't be able to run depreciation again.
If AptaFund is configured to create general ledger transactions that track a capital asset throughout its life, the capital assets tracking fund and the depreciation element value are used to create a depreciation transaction in the General Ledger for each applicable asset.
AptaFund creates depreciation transactions for capital assets purchased using Governmental fund types — General, Special Revenue, Capital Projects, or Debt Service — and for capital assets purchased using Proprietary fund types — Enterprise or Internal Service.
The system also checks to see if the asset items are charged to a Governmental fund type or a Proprietary fund type or both, and applies the correct General Ledger transaction.
See About General Ledger Transactions for more information.
If AptaFund is not configured to create general ledger transactions, the capital assets tracking fund is not used. Records are created in History, and the depreciation information is included on reports.
AptaFund does the calculations for the following:
Depreciation expense
Beginning & ending accumulated depreciation
Reducing net book value, which equals Cost minus Depreciation
Return to Asset Management Overview
Return to Capital Assets Overview
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