(v2190.01) Depreciation Expense (Funds)

The key depreciation account in Strategic Finance must be entered in historical and forecast periods. This account is used on the Balance Sheet to calculate Accumulated Depreciation (v2190.00) and also on the Cash Flow Statement as an adjustment to Net Income (v1750).

Any depreciation expense amount entered on the Income Statement into accounts such as Depreciation Expense (v1110), Cost of Goods Sold (v1040) or SG&A Expense (v1080), is used in calculations on the Income Statement only and is not included in calculations on the Cash Flow Statement.

The default forecast method for Depreciation Expense (Funds) (v2190.01) is as a Percent of Prior Period Gross Fixed Assets (v2170).