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Period Control Settings for Fixed Asset Depreciation Methods

Hello all,


The system pre-delivers depreciation method for a list of countries, which is available in the help center documentation Using Depreciation Methods. These Methods are used to calculate the asset's depreciation in accordance with financial accounting standards.


Each depreciation method has an associated period cotrol method, which contains a period control key for each kind of transaction. This period control is the logic that determines the effective date of an asset transaction for depreciation purposes. For example, if an aquisiton happens in the middle of the peirod, it determines whether depreciation should start at the beggining of the current period or in the next period.

How to trace the period control method and period control key:

  1. Open Help Center document  Using Depreciation Methods.
  2. Click the relevant country in the section Depreciation Methods - Predelivered per Country.
  3. In the document that it opens (Depreciation Method - <country> ), find the concerned method and refer to the Period Control Method column.
  4. Open the Help Center document Period Control Methods and Keys.

You'll find the description of each period control key and the assignment of this keys to each kind of transaction (Acquisiton, Retirement, etc) for the period control method assigned to the depreciation code.

Example:

Country Code: DE

Depreciation code: D020

Period Control Method: 003

Aquisition Posting has period control key 01-Pro rata at period start date

Retirement has period control key 02-Pro rata at up to mid period st period start

The explanation of each period control key is avalaible in the documentation.

Assuming a fiscal year variant same as calendar year, the following would be the postings:

Acquisition Posting on January, 31st -> Calculation Period: 1

Acquisition Posting on March, 14th    -> Calculation Period: 3

Retirement posting on January, 31st     -> Calculation Period: 2

Retirement posting on March, 14th        -> Calculation Period: 3

Retirement posting on December, 31st -> Calculation Period: 1 (in the following year)

Helpful documentation:

- Configuration: Depreciation Methods

- Period Control

- Manual Postings in Fixed Assets

Regards,

Alexandre.

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