Understanding Depreciation Projections

You can run the Depreciation Projections program for these purposes:

  • To calculate projected depreciation balances for future years

  • To calculate final depreciation for the current year

This batch program automates the processes of calculating depreciation and updating balances from a starting period through a specified period, for as many years into the future as you have date patterns set up.

Date patterns must be set up into future years when you project depreciation. You can set up as many future years as you need. Asset balances must exist in the start year.

If final depreciation balances exist (where the Depreciation Projection Calculation Field DPCF is blank and the F1202 table has balances), then projections will not override them. You should purge the depreciation projections before running final depreciation.

The Depreciation Projections program (R12865) runs the Asset Account Balance Close program (R12825) automatically to refresh balances in the From Year field. The Depreciation Projections program then runs the Compute Depreciation by Period report (R12855) and the Asset Account Balance Close program for the specified fiscal date range for each period in the range of dates. The system updates table F1202 for projections and differentiates it from final depreciation by placing a 1 in the Depreciation Projection Calculation Field (DPCF). Final depreciation, splits, transfers, disposals, and beginning balances are not calculated for projection balances for records when DPCF=1 in table F1202.

Note: Do not run this program for assets that have a compute direction of P. Projections for assets with a compute direction of P must be run by period for correct calculation.
Important: Only projection balances can be purged and rerun, not final depreciation. It is strongly recommended that you run this program in preliminary mode first to identify and correct any errors before running it in final mode.