Processing Depreciation

This topic provides an overview of processing depreciation.

Page Name

Definition Name

Usage

Depreciation Calculation Page

RUN_AMDPCALC

Run the Depreciation Calculation process.

Open Transaction Detail Page

OPEN_TRANS_DETAIL

Review detailed information about an open transaction.

You can view open tax transactions by using the same process when you select Asset Management > Taxes > Reports > Review Open Tax Transactions > Open Transactions- Tax.

Depreciation Process Log Page

AM_ERROR_LOG

Review depreciation processing results for errors.

You must run depreciation to account for every transaction that you perform on an asset. For example, when you transfer an asset, you may need to run depreciation to correctly reflect the new department that is using the asset. For some transactions (including adjustments, transfers, and recategorizations), the depreciation calculation process moves the stored depreciation amounts from department to department or category to category, depending on the transaction that you are performing and the ChartFields that you specify.

Use the Depreciation Calculation page (RUN_AMDPCALC) to run the Depreciation Calculation process.

Field or Control

Definition

Unit

Select a business unit from which to select a book or range of assets.

Book Name

Select a book to further narrow the assets to be included in processing.

From Asset ID and To Asset ID

Enter a range of assets to include in processing.

Process Frequency

Select the frequency for the process from these values:

Always

Don't

Once

Delete Stage Row

Select the staged rows to delete:

All

Current

No

Note: Accumulated depreciation for group member assets is loaded at the member asset level.

See Configuring Temporary Tables for Background Processing.

Use the Open Transaction Detail page (OPEN_TRANS_DETAIL) to review detailed information about an open transaction.

You can review open transactions broadly—for example, by searching for them by business unit. Review open transactions more specifically by including more criteria in your search.

Open Transaction Searches

Use broad or narrow search criteria to identify a list of open transactions. In addition to business unit, you can specify asset identification, asset book name, transaction date, or accounting date. Alternatively, you can specify the action type of a pending transaction. Also, each open transaction can have a status, which you can use to further narrow the search criteria.

Actions of Open Transactions

Each pending transaction can have an action type associated with it. The following list shows the action types that are available:

  • Asset Addition

  • Asset Cost Adjustment

  • Asset Recategorization

  • Asset Reinstatement

  • Asset Retirement

  • Asset Transfer

  • Book Adjustment

  • Budgeted Depreciation

  • Budgeted Lease Payments

  • Depreciation

  • Inflation Adjustment

  • Lease Payment

  • Manual Reserve Adjustment

  • Prior Period Depreciation

  • Resume Depreciation

  • Retro Rate Change for Group Assets

  • Suspend Depreciation

Depreciation Calc Status

Field or Control

Definition

Completed Depreciation

Depreciation has been calculated for the transaction.

Held For Transfer In

When you process interunit transfers, PeopleSoft Asset Management processes the out and in transactions at the same time. This status indicates that the transaction is being held until its corresponding transfer-out can be processed.

Never Calculate Depreciation

The Depreciation Calculation process never includes the transaction.

Pending Depreciation

Depreciation has not yet been calculated for the transaction.

In Processing

Depreciation calculation is processing.

Acctg Entry Creation Status

Field or Control

Definition

Completed Distribution

The transaction has been sent to the general ledger.

Never Calculate Distribution

The distribution process never includes the transaction.

Pending Distribution

The transaction has not yet been sent to the general ledger.

Reporting Process Status

The reporting process status reflects the status in connection with the depreciation reporting table.

Field or Control

Definition

Completed

The transaction has been uploaded to the depreciation reporting table.

Never

The transaction will not be processed.

Pending

The transaction has not yet been uploaded to the depreciation reporting table.

Group Consolidation Status

Field or Control

Definition

Completed Sum Composite

The summarization process has been completed on the transactions for group member assets.

Grouped Composite

The asset is a group asset.

Member Depreciation

A book change has been made on a group member (such as changing its convention or in-service date).

Never Sum Composite

The transactions are never used by the summarization process.

Pending Sum Composite

The summarization process has not yet been completed on the transactions for group member assets.

When you have searched for all open transactions based on specified criteria, you can view particular open transactions in detail.

PeopleSoft Asset Management enables you to change depreciation attributes as necessary. You may find it necessary to:

  • Change the effective date.

    Changing the effective date of depreciation attributes may become necessary to accommodate changes in tax law or company policy. You can set up anticipated changes for future use by effective-dating them. You can also affect prior periods by changing the effective date.

  • Change the depreciation limit.

    Changing the depreciation limits on assets may change the amount of depreciation that you can expense on an asset in a given year. This, in turn, changes the depreciation amount that is allocated to each period. If necessary, the life of the asset is extended to depreciate the asset fully.

  • Change the status.

    Asset depreciation status is book-specific. Therefore, an asset can be depreciable for one book and nondepreciable for another. There is no limit to the number of times that an asset can have its depreciation suspended. Also, there is no limit on the length of time for which it can be suspended.

    When you change the status of an asset from Depreciable to Nondepreciable, the system deletes future depreciation calculations. All transactions that are performed while the asset is suspended take into account only the depreciation that has occurred as of that time.

    While an asset is in a suspended state (that is, has a status of Nondepreciable), you can still perform financial transactions on it. Those transactions generate appropriate accounting entries with a transaction date indicating when the transaction actually took place. Adjustments generate one accounting entry for the cost adjustment. Transfers generate two accounting entries—one for the cost transfer and one to transfer accumulated depreciation. Retirements generate accounting entries for cost, accumulated depreciation, and any gain or loss.

    Note: You cannot perform interunit transfers on assets that have been suspended.

    When you change a nondepreciable asset to a depreciable asset, PeopleSoft Asset Management performs a remaining value calculation and calculates depreciation based on all depreciation parameters. The time during which depreciation was suspended is not taken into account against the asset's life.

See Calculating Depreciation When Salvage Value Exceeds Net Book Value (NBV).

Use the Depreciation Process Log page (AM_ERROR_LOG) to review depreciation processing results for errors.

You can review each processing instance for errors that may have occurred during processing. You can view the business unit, asset ID, and other information that is related to the error along with a message describing the problem. You can then correct the problem or continue.