Steps to Process Catch-Up Depreciation The Process Catch-Up Depreciation option in Fixed Asset Inventory is used to calculate depreciation from the time the assets were purchased up to, but not including, the current fiscal year (as based on the Processing Month for the batch). With the Process Catch-Up Depreciation option, the accumulated depreciation is calculated using the straight-line method for those assets with a Purchase Date prior to the current fiscal year and depreciation not ever having been calculated or entered for that duration. The Process Catch-Up Depreciation option calculates the first year's depreciation for the assets according to the First Year Depreciation Type specified for each asset.
When completing the Process Catch-Up Depreciation option, all assets that are set up to depreciate with a useful life greater than zero, were purchased in a prior fiscal year, and have not had depreciation calculated or entered for the period from when the asset was purchased up to (not including) the current fiscal year, will automatically be included in the batch. For each asset in the batch, the amount to be depreciated and the General Ledger entries (if applicable) will display.
Once the catch-up depreciation is processed, the asset records in the Asset File Maintenance option are updated to reflect the new depreciation information (the Book Value, Depreciation (if applicable), and Depreciation Accumulated fields are updated), and the necessary entries post to General Ledger (from the Fixed Asset journal) to record the depreciation, if applicable.