The system uses your entry in the Depr Start Date field when selecting records for the Compute Depreciation process.

Depreciation calculations will not take place if blanks display in this field, or if this date is later than the end of the current accounting period. If you anticipate a depreciation start date delay due to installation or calibration requirements, for example, you can enter a future date in this field. In this circumstance, depreciation calculations will not begin until the future date coincides with your current accounting period. The date in this field must be on or before the end of the current accounting period for depreciation calculations to take place.

You can set a system configuration flag on the Configure Fixed Assets Settings screen to designate how the system should distribute "catch-up" depreciation. This ensures that the correct amount of any delayed current year (purchase year of fiscal year) depreciation will be computed for the current depreciation year. (The system will not compute "catch-up" depreciation earlier than the current depreciation year.)

A "catch-up" situation could occur, for example, if the acquisition of an asset was communicated after-the-fact, if there was a delay in computing depreciation after acquisition, or if changes were made to fields used to calculate depreciation (such as Cost) after depreciation for that asset had already begun.

Two system options are available on the Configure Fixed Assets Settings screen for "catch-up" depreciation:

• Spread among remaining periods in PY or FY

  This option spreads the amount of "catch-up" depreciation evenly throughout the remaining periods in the current purchase year or fiscal year, as applicable. If you choose this option, the system divides the amount of catch-up depreciation by the number of periods remaining in the depreciation year and includes this amount in each period's depreciation. Catch-up depreciation is not "extra" depreciation. At the end of the current depreciation year, the total amount of depreciation will be correct for the current depreciation year, provided the correct depreciation start date was entered for the asset.

• Added to current period amount

  This option adds the total amount of catch-up depreciation to the depreciation for the current period. "Catch-up" depreciation is not "extra" depreciation. At the end of the current depreciation year, the total amount of depreciation will be correct for the current depreciation year, provided the correct depreciation start date was entered for the asset.

  Regardless of your selection, this configuration option is NOT designed for historical "catch-up" calculations during the initialization of your asset records. Instead, it is designed to help you on an ongoing basis for new records, in cases when you were not able to begin depreciation at the proper time.

Regardless of your configuration selection and the methodology by which depreciation is computed, you can always manually overwrite system depreciation expense calculations on an asset-by-asset basis.