Microsoft DynamicsTM AX
Microsoft Dynamics AX 4.0 SP2
new India localization feature
(Depreciation as per Companies Act, 1956)
White Paper
Date: November 2007
Table of Contents
Introduction ................................................................................................................. 3
Depreciation as per Companies Act 1956 ................................................................. 3
Basic setup for this feature ................................................................................................................................................... 4
Set up parameters to calculate depreciation on fixed assets ............................................................................. 4
Set up number of days for a fixed asset calendar period .................................................................................... 5
Define shift depreciation rates for Straight line percentage and Reducing balance methods ............. 5
Define the type of shift and industry for value models and attach a value model for a fixed asset ... 6
Create depreciation proposal and calculate shift depreciation ......................................................................... 7
Seasonal type of industry ................................................................................................................................................. 8
Non-seasonal type of industry ....................................................................................................................................... 8
Calculate shift depreciation .................................................................................................................................................. 8
View the projected shift depreciation ........................................................................................................................... 10
Depreciation of fixed assets - Schedule XIV ............................................................................................................... 11
Create ledger account for capital items in the chart of accounts.................................................................. 11
Create a capital item group .......................................................................................................................................... 11
Create an inventory model group for the capital items .................................................................................... 12
Create capital items in the Items form ..................................................................................................................... 12
Set up the asset group ................................................................................................................................................... 12
Receipt of capital goods ................................................................................................................................................ 12
Acquisition of fixed assets ............................................................................................................................................. 12
Sale of fixed assets using the free text invoice ...................................................................................................... 13
Transfer of capital items to the fixed assets ........................................................................................................... 13
Depreciation of the fixed assets .................................................................................................................................. 13
Generate the report on depreciation of the fixed assets-schedule XIV....................................................... 13
Depreciation schedule report columns .................................................................................................................... 14
Forms for this feature .......................................................................................................................................................... 15
Forms that are modified for this feature ...................................................................................................................... 16
FEATURE FOR INDIA
2
Introduction
This information provides setup instructions and an overview of the Depreciation as per Companies
Act, 1956 feature for Microsoft Dynamics™ AX that is specific to users in India. It includes a description
of the feature, a list of forms and fields used and added for the feature, and procedural information to
use the feature. This feature is available only if the configuration key for India is selected.
Depreciation as per Companies Act 1956
The calculation of depreciation using different methods is described under Sections 205 and 350 of
Companies Act, 1956. The depreciation rates for different methods are prescribed in Schedule XIV of
the Act.
Companies Act, 1956 states that the calculation of depreciation using the Straight line method and
Reducing balance method must be based on the number of days in a year, which is 365 days or 366
days if it is a leap year. You must calculate monthly depreciation based on the number of days in a
specific month, and you must calculate the proportionate depreciation for an asset that is purchased or
sold during the year.
The Clause 4 of Schedule XIV states that depreciation must be calculated on a pro-rata basis for any
addition made to an asset during a financial year from the date of addition. If an asset is sold,
discarded, demolished, or destroyed during a financial year, you must calculate depreciation on a prorata basis until the date on which the asset is sold, discarded, demolished, or destroyed.
The Clause 6 of Schedule XIV states that extra depreciation must be calculated for the number of days
that the organization has worked a double shift or a triple shift. The number of working days in a year
is based on the following two categories:

Seasonal factory – The number of days that the organization has worked during the year or
180 days, whichever is greater.

Others – The number of days that the factory or organization has worked during the year or
240 days, whichever is greater.
The calculation of depreciation for a specific period is based on the selected type of shift and industry.
You can define rates for single shift, double shift, and triple shift to calculate depreciation using
Straight line percentage method or Reducing balance method.
You must calculate full depreciation on a fixed asset in the year of purchase when the asset is
purchased for a value that is less than or equal to INR 5000.
In accordance with Schedule XIV, the depreciation of fixed assets that forms a part of the balance sheet
is generated based on Schedule VI. Fixed assets are displayed in the balance sheet in the following
manner.
Gross block – Accumulated depreciation = Net block
The Gross block represents the total amount of the fixed assets and Accumulated depreciation is the
amount that represents the decrease in the value of the property over a certain period. Specific details
about the gross block and accumulated depreciation are in the Depreciation schedule report. The
depreciation amount is calculated on the basis of the rates defined in Schedule XIV of Companies Act
for each category of the asset.
For more information, refer to the following topics:


3
Basic setup for this feature
Calculate shift depreciation
FEATURE FOR INDIA




View projected shift depreciation
Depreciation of fixed assets-Schedule XIV
Forms for this feature
Forms that are modified for this feature
Basic setup for this feature
Refer the following topics for more information:





Set up parameters to calculate depreciation on fixed assets
Set up number of days for a fixed asset calendar period
Define shift depreciation rates for Straight line percentage and Reducing balance methods
Define the type of shift and industry for value models and attach a value model for a fixed
asset
Create depreciation proposal and calculate shift depreciation
Set up parameters to calculate depreciation on fixed assets
1.
Click General ledger > Setup > Parameters > Ledger tab.
2.
Select the Activate extended features for India check box to activate the extended features for
India.
3.
Click the Fixed assets tab.
4.
Select the Companies act depreciation check box to activate the depreciation as per companies
act feature.
5.
Under the India Depreciation field group, enter the information in the following fields:

Minimum number of working days for seasonal industries – Enter the minimum number of
working days to calculate depreciation on fixed assets for seasonal industries.

Minimum number of working days for non-seasonal industries – Enter the minimum
number of working days to calculate depreciation on fixed assets for non-seasonal industries.
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
Maximum acquisition value to avail full depreciation – Enter the maximum acquisition
value for a fixed asset to avail full depreciation. You can avail full depreciation on a fixed asset
in a specific year that the fixed asset is used if the acquisition value of the fixed asset is equal to
or less than the value specified in this field.
Note: Full depreciation is calculated if the depreciation profile that is attached to the value model
that uses the Straight line percentage method or Reducing balance method.
6.
Press CTRL+S or close the form to save the settings.
Set up number of days for a fixed asset calendar period
1.
Click General ledger > Setup > Periods > Fixed asset calendars.
2.
Press CTRL+N to create a new fixed asset calendar.
3.
Enter an identification of the calendar year for the fixed asset in the Calendar field.
4.
Enter a brief description of the calendar year for the fixed asset in the Description field.
5.
Click the Years button. The total number of days in a year that is defined for a fixed asset calendar
is displayed in the Days field. The total number of days in a year includes the starting date and the
ending date that is defined in a calendar year.
6.
Click Create New Year button to create a new calendar year.
7.
Select the starting date and the ending of the year in the Enter start of year field and the Enter
close of year field.
8.
Click OK.
9.
Click the Periods button in the Fixed asset calendars form to define periods for a calendar year.
10. Click the Overview tab and press CTRL+N to create a new calendar period.
11. Enter the starting date in the Start date field and the ending date in the End date field in a
calendar period.
12. Enter the status, comments, month, and quarter details for the calendar period in the Status,
Comments, Month, and Quarter fields.
13. View the total number of days in a calendar period in the Days field. The total number of days in a
period includes the starting date and the ending date that is defined in a calendar period.
For example, if the starting date is April 1, 2007 and the ending date is March 31, 2008, the value
366 is displayed in the Days field because 2008 is a leap year.
Note:

You only can modify the number of days in the Days field to a value that is less than the
default value.

When you delete a period, the previous period and the total number of days are updated
accordingly.
14. Press CTRL+S or close the form to save the settings.
Define shift depreciation rates for Straight line percentage and Reducing balance methods
1.
Click General ledger > Setup > Fixed assets > Depreciation profiles.
2.
Press CTRL+N to create a new depreciation profile for the Straight line percentage method or
Reducing balance method.
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FEATURE FOR INDIA
3.
Select one of the following options in the Method field:

Straight line percentage option for depreciation profile that follows the Straight line
percentage method.

Reducing balance option for depreciation profile that follows the Reducing balance method.
4.
Enter the percentage for the Straight line percentage method or Reducing balance method in
the Percentage field.
5.
Click the Shift depreciation button to define rates that are used to calculate shift depreciation for
the Straight line percentage method or Reducing balance method.
6.
On the Overview tab, press CTRL+N to create a new line.
7.
Enter the starting date to apply the shift depreciation rates in the From date field. Enter the
ending date for the shift depreciation rates in the To date field.
8.
Enter the rates for shift depreciation in the following fields:

Single shift percentage – Enter the percentage to calculate depreciation for a single shift. The
single shift percentage is same as the percentage of depreciation that is specified in the
Percentage field.
Note: If you create more than one record to define different rates for single shift, the rate that
is within the period if the system date is displayed in the Percentage field.
9.

Double shift percentage – Enter the percentage to calculate depreciation for a double shift.

Triple shift percentage – Enter the percentage to calculate depreciation for a triple shift.
Press CTRL+S or close the form to save the settings.
Define the type of shift and industry for value models and attach a value model for a fixed asset
1.
Click General ledger > Setup > Fixed assets > Value models.
2.
On the Overview tab, press CTRL+N to create a new value model.
3.
Enter an identification of the value model in the Value model field.
4.
Enter a brief description of the value model in the Description field.
5.
Select the Current option in the Posting layer field.
6.
Select the fixed asset calendar for the value model in the Calendar field.
Note: You must select the Current option in the Posting layer field to calculate depreciation for
assets with the depreciation profile set at the Straight line percentage method or Reducing
balance method.
7.
Click the General tab. Select the depreciation profile for the value model in the Depreciation
profile field.
Note:

You cannot define an alternative depreciation profile in the Alternative depreciation profile
field for a depreciation profile that follows the Straight line percentage method or the
Reducing balance method.

The shift depreciation is not calculated if you attach an alternative depreciation profile that
follows Straight line percentage method or the Reducing balance method to a depreciation
profile.
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
You cannot define an extraordinary depreciation profile in the Extraordinary depreciation
profile field for a depreciation profile that follows the Straight line percentage method.
8.
Select the calendar year from the Calendar field.
9.
Select the Override fixed asset calendar days? check box to override the number of days that are
defined for a fixed asset calendar with the number of days for which the asset is used.
10. Enter the total number of days that the asset is used in the Asset working days field.
11. Click the Shift depreciation button.
Note: The Shift depreciation button is activated for a value model with a Current posting layer
only.
12. On the Overview tab, select the starting date in the From date field.
13. Select the ending date from the To date field.
14. Select the type of shift for the value model in the Type of shift field from the following options:

None – Select this option if shift depreciation does not apply for the value model.

Single shift – Select this option to apply single shift depreciation for the value model.

Double shift – Select this option to apply double shift depreciation for the value model.

Triple shift – Select this option to apply triple shift depreciation for the value model.
15. Select the type of industry to apply a specific type of shift depreciation to in the Type of industry
field from the following options:

Non-seasonal industry

Seasonal industry
16. Press CTRL+S or close the form to save the settings.
17. Click General ledger > Fixed assets. Click the Value models button to attach a value model to a
fixed asset.
18. Click the Shift depreciation button in the Value models form to view or modify the shift
depreciation setup for a value model.
Note: The Shift depreciation button is activated when you select a value model with a Current
posting layer.
Create depreciation proposal and calculate shift depreciation
1.
Click General ledger > Journals > General journal > Lines button > Fixed assets button >
Depreciation proposal or General ledger > Journals > Fixed assets > Lines button >
Proposals button > Depreciation proposal.
2.
Select the date interval from the To date field.
3.
Click Select button and select the value model for which the depreciation proposal is created.
4.
Select the Shift depreciation check box to calculate shift depreciation.
Note:

7
The Shift depreciation check box is available only when you select a value model with
Current posting layer.
FEATURE FOR INDIA

5.
The calculation of shift depreciation takes place only when the depreciation profile that is
attached to the value model follows the Straight line percentage method or Reducing
balance method.
Click OK to create lines in the Journal voucher form, based on the depreciation proposal.
Note: You can avail full depreciation for a fixed asset if the following two conditions are met:

When you create the depreciation proposal in the year in which the asset has been
purchased.

When the value of the fixed asset is equal to or less than the value specified in the
Maximum acquisition value to avail full depreciation field (General ledger > Setup >
Parameters > Fixed assets tab).
The following tables explain the basis of calculation of depreciation for seasonal and non-seasonal
types of industries:
Seasonal type of industry
Override fixed asset calendar
days? parameter setup
Basis of calculation
Override fixed asset calendar
days? check box is cleared
Calculation is based on the number of days that are defined in the
Days field for the fixed asset calendar attached to the value model or
the number of days that are defined in the Minimum number of
working days for seasonal industries field in the General ledger
Parameters form, whichever is greater.
Override fixed asset calendar
days? check box is selected
Calculation is based on the number of days that are defined in the
Asset working days field for the value model or the number of days
that are defined in the Minimum number of working days for
seasonal industries field in the General ledger Parameters form,
whichever is greater.
Non-seasonal type of industry
Fixed asset calendar days
Basis of calculation
Override fixed asset calendar
days? check box not selected
Calculation is based on the number of days that are defined in the
Days field for the fixed asset calendar attached to the value model or
the number of days that are defined in the Minimum number of
working days for non-seasonal industries field in the General ledger
Parameters form, whichever is greater.
Override fixed asset calendar
days? check box selected
Calculation is based on the number of days that are defined in the
Asset working days field for the value model or the number of days
that are defined in the Minimum number of working days for nonseasonal industries field in the General ledger Parameters form,
whichever is greater.
Calculate shift depreciation
In accordance with the Companies Act, 1956 you can calculate shift depreciation for a value model
with a Current posting layer and depreciation profile that uses the Straight line percentage method
FEATURE FOR INDIA
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or Reducing balance method. The calculation of number of days that an asset is used for is explained
in the following example.
Suppose an asset is used from December 21, 2007 to March 31, 2008. The days for each period in the
fixed asset calendar are as follows:
12/21/2007 to 12/31/2007 = 11 days
1/1/2008 to 1/31/2008 = 31 days
2/1/2008 to 2/29/2008 = 20 days
3/1/2008 to 3/31/2008 = 31 days
The total number of days that the asset is used for is 93 days, which is 11+31+20+31.
Refer to the following table for different formulas that are used to calculate shift depreciation.
9
Type of
depreciation
method
Type of
industry
Number of working
days for the industry
Formula
Straight line
percentage
method
Seasonal
More than the number of
days that are defined in
the Minimum number of
working days for
seasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Cost of acquisition – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Total number of working
days in a year
Straight line
percentage
method
Seasonal
Less than the number of
days that are defined in
the Minimum number of
working days for
seasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Cost of acquisition – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Minimum number of
working days for seasonal industries
Straight line
percentage
method
Nonseasonal
More than the number of
days that are defined in
the Minimum number of
working days for nonseasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Cost of acquisition – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Total number of working
days in a year
Straight line
percentage
method
Nonseasonal
Less than the number of
days that are defined in
the Minimum number of
working days for nonseasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Cost of acquisition – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Minimum number of
working days for non-seasonal industries
Reducing
Seasonal
Less than the number of
[(Written down value – Scrap value) *
FEATURE FOR INDIA
balance method
days that are defined in
the Minimum number of
working days for
seasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Total number of working
days in a year
Reducing
balance method
Seasonal
More than the number of
days that are defined in
the Minimum number of
working days for nonseasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Written down value – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Minimum number of
working days for seasonal industries
Reducing
balance method
Nonseasonal
More than the number of
days that are defined in
the Minimum number of
working days for nonseasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Written down value – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Total number of working
days in a year
Reducing
balance method
Nonseasonal
Less than the number of
days that are defined in
the Minimum number of
working days for nonseasonal industries field
(General ledger > Setup >
Parameters > Fixed assets
tab)
[(Written down value – Scrap value) *
Percentage that is defined for the type of shift]
* Number of days that the asset is used for
during the period ÷ Minimum number of
working days for non-seasonal industries
Straight line
percentage or
Reducing
balance method
Seasonal or
Nonseasonal
If you select the Override
fixed asset calendar
days check box and
specify the days in the
Asset working days field
for a value model
(General ledger > Setup >
Fixed assets > Value
models > General tab)
[(Cost of acquisition or Written down value
– Scrap value) * Percentage that is defined for
the type of shift] * Number of days that the
asset is used for during the period ÷ Asset
working days
Note: Full depreciation is calculated if the value of an asset is less than or equal to the value that is
specified in the Maximum acquisition value to avail full depreciation field (General ledger >
Setup > Parameters > Fixed assets tab). In this case, the days that are specified in the Minimum
number of working days for seasonal industries field or Minimum number of working days
for non-seasonal industries field are not considered for calculation of depreciation.
View the projected shift depreciation
1.
Click General ledger > Fixed assets > Value models button > Inquiry button > Profile.
2.
Select the type of shift to view the projected depreciation for in the Type of shift field. The
options are Single shift, Double shift, and Triple shift.
FEATURE FOR INDIA
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Note: The Type of shift field is displayed only when the depreciation profile that is attached to the
value model follows the Straight line percentage method or Reducing balance method.
3.
View the projected depreciation amount for the selected type of shift in the Depreciation field.
Note:

The projected depreciation for a single shift is based on the percentage that is defined in the
Single shift field or Percentage field for the depreciation profile that is attached to the value
model.

The projected depreciation for a double shift and a triple shift is based on the percentage that
is defined in the Double shift field and Triple shift field for the depreciation profile that is
attached to the value model.
Depreciation of fixed assets - Schedule XIV
You must set up the capital items and the fixed assets to run the depreciation schedule report.
The value of supplies and materials, along with the labor and other costs associated with the
construction of a location for a company is treated as capital-work-in-progress. The supplies used in
the work that is still in progress are called capital items.
To calculate the values related to the capital items in the depreciation schedule report, follow the steps
listed below.
Refer to the following topics for more information:












Create ledger accounts for capital items in the chart of accounts
Create a capital item group
Create an inventory model group for the capital items
Create capital items in the items form
Setup the asset group
Receipt of capital goods
Acquisition of fixed assets
Sales of fixed asset using the free text invoice
Transfer of capital items to the fixed assets
Depreciation of the fixed assets
Generate the report on depreciation of the fixed assets
Depreciation schedule report columns
Create ledger account for capital items in the chart of accounts
1.
Click General ledger > Chart of accounts > Overview tab.
2.
Create a new ledger account for the capital items in the Chart of accounts form.
Note: You must set up different ledger accounts for capital items and for other item groups so that
the amounts in the Inventory schedule report that you generate using the Financial Statement rows
(name) form match the inventory amount in the balance sheet.
Create a capital item group
1.
Click Inventory management > Setup > Item groups.
2.
Press CTRL+N to create an item group for the capital items.
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FEATURE FOR INDIA
3.
Select the Asset group check box to include the capital item group to the asset group. The total
inventory balance of the item group that this check box is selected for reflects in the Depreciation
schedule report.
Note: Asset group check box is available only if you select the Companies Act depreciation
check box.
4.
To attach the capital work in progress account to the capital item group, click the Purchase order
tab, and in the Receipt field, select the ledger account that is created for capital work in progress
in the Chart of accounts form.
5.
Click the Inventory tab. In the Issue field, select the capital work in progress account that is
created in the Chart of accounts form.
Note: You also can select any other ledger account created for capital items in the Issue field.
Create an inventory model group for the capital items
1.
Click Inventory management > Setup > Inventory > Inventory model groups.
2.
Create a new inventory model group for the capital items. You can select the FIFO (First in First
Out) option for the inventory forecast model.
Create capital items in the Items form
1.
Click Inventory management > Items > Overview tab.
2.
Create a capital item and select the item group created for capital items in the Item group field.
3.
Click the General tab and select the inventory model group created for capital items in the
Inventory model group field.
Set up the asset group
1.
Click General ledger > Setup > Fixed assets > Fixed asset groups.
2.
Create new asset groups.
3.
Click General ledger > Fixed assets.
4.
Create the fixed assets in the Fixed assets form.
Receipt of capital goods
The receipt of capital goods is the purchase of capital goods from a vendor.
1.
Click Accounts payable > Purchase order.
2.
Create a new purchase order with the required details and invoice the order.
Acquisition of fixed assets
You can use a fixed asset journal to record the transaction of the purchase of the fixed assets.
1.
Click General ledger > Journals > Fixed assets > Lines button.
2.
Press CTRL+N to create a new voucher line.
3.
Select the Acquisition option in the Transaction type field to create an acquisition transaction for
the fixed assets created in the Fixed assets form.
4.
Validate and post the journal.
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Sale of fixed assets using the free text invoice
Record the transactions of the sale of a fixed asset to a customer using a free text invoice.
1.
Click Accounts receivable > Free text invoice.
2.
Press CTRL+N to create a new invoice line.
3.
Select the customer in the Customer account field and enter the required fields on the Overview
tab.
4.
Click the Invoice lines tab and enter the invoice amount.
5.
Select the fixed asset in the Fixed asset number field.
6.
Post the Free text invoice form.
Transfer of capital items to the fixed assets
You should transfer the capital item by issuing the inventory items to the Fixed assets journal.
1.
Click General ledger > Journals > Inventory to fixed assets > Lines button.
2.
Press CTRL+N to create a new voucher line.
3.
In the Fixed asset number field, select the fixed asset created in the Fixed assets form.
4.
You can select the Acquisition adjustment option in the Transaction type field.
5.
Select the capital item in the Item number field that was created in the Items form, and enter the
quantity of the capital items in the Quantity field.
6.
Validate and post the journal.
Depreciation of the fixed assets
Run the depreciation for the fixed assets using the fixed assets journal.
1.
Click General ledger > Journals > Fixed assets > Lines button.
2.
Enter the required fields in the Journal voucher form.
3.
Click the Proposals button > Depreciation proposal option to run the depreciation.
4.
Press the Select button and select the fixed asset that the depreciation is run for.
5.
Validate and post the journal.
Generate the report on depreciation of the fixed assets-schedule XIV
1.
Click General ledger > Reports > Transactions > Periodic > Depreciation schedule.
2.
Enter the closing date of the previous financial year in the Closing date prior year field. This is the
period that you report the depreciation for.
3.
Enter the closing date for the current financial year that the depreciation is reported for in the
Closing date this year field.
4.
Select the fixed asset group in the From field and the To field. This is the range of the asset group
that will appear on the depreciation schedule report.
5.
Indicate whether to print the current transactions, operating transactions or tax transactions in the
Posting layers field. Transactions posted in the selected layer are reflected in the depreciation
schedule report.
6.
Enter the schedule number of the depreciation schedule report in the Schedule field.
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7.
Enter the header and the footer information. Use this information to attach notes to the report.
Depreciation schedule report columns
Refer the following information about the columns in the depreciation schedule report.
Column name
Description
a) Description
The name of the asset group or the capital items that you
generate the report for.
b) Opening balance
The amount of the closing balance of the asset group or the
capital items for the previous financial year.
c) Additions during the year
The additions made to the asset group or the capital items
during the year. These additions increase the value of the
fixed assets.
The types of transactions that increase the value of the asset
groups are listed below.
Acquisition (+)
Write up adjustment (+)
Write down adjustment (-)
Revaluation
Transfer of the capital items to the fixed assets.
Purchases of capital items.
Note:
The net balance of the acquisition adjustment =
[Acquisition adjustment (+) - Acquisition adjustment (-)]
The net of revaluation =
[Revaluation (+) – Revaluation (-)]
The + sign indicates an increase in the value of the fixed
asset and the – sign indicates a decrease in the value of the
fixed assets.
d) Deductions during the year
The cost of the assets sold or scrapped during the year.
Disposal-Sale (-)
Disposal-Scrap (-)
Transfer of capital items to the fixed assets.
e) Balance of the asset
b+c-d
f) Depreciation opening balance
The amount of the closing balance of the accumulated
depreciation of the asset group for the previous year.
g) Depreciation during the year
The total amount of the accumulated depreciation
calculated during the year.
You can view the values for the following types of
depreciation transactions in this column. The types of
transactions are listed below.
Depreciation
Depreciation adjustment (Net)
Extraordinary depreciation
Note:
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Column name
Description
Net Depreciation adjustment =
[Depreciation adjustment (+) - Depreciation adjustment (-)]
h) Deduction in depreciation during the
year
The total amount of balance of the accumulated
depreciation of the assets sold or scrapped during the year.
i) Total depreciation balance
f+g-h
j) Current balance
The net amount of the balance of the asset group or the
capital items for the current year.
e-i
k) Previous balance
The net amount of the balance of the asset group or the
capital items for the previous year.
Forms for this feature
Refer to the following information for forms that you will use with this feature.
Form name and locator
Description
Depreciation schedule (form)
Use this form to generate the report about the
depreciation of the fixed assets.
General ledger > Reports > Transactions >
Periodic > Depreciation Schedule
Depreciation schedule (form)
Period field group
General ledger > Reports > Transactions >
Periodic > Depreciation Schedule
Closing date prior year field
Enter the closing date for the previous financial year. This is
the period that you report the depreciation for.
Closing date this year field
Enter the closing date for the financial year that you report
the depreciation for.
Asset group field group
From field
Select the starting range of the fixed assets. The range you
select here is reflected in the depreciation schedule report.
To field
Select the ending range of the fixed assets. The range you
select here is reflected in the depreciation schedule report.
Notes field group
Schedule field
Enter the schedule number. This forms the annexure of the
report.
Header field
Enter the header information. Use this to attach notes to
the report.
Footer field
Enter the footer information. Use this information to attach
notes to the report.
Depreciation schedule (form)
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General tab
Form name and locator
Description
General ledger > Reports > Transactions >
Periodic > Depreciation Schedule
Enter the closing date for the previous fiscal year and for
the current financial years to report the depreciation of the
fixed assets for the period. Select the range of the fixed
assets that will appear on the depreciation schedule report.
You also can attach the annexures and notes to the report
using this form.
Forms that are modified for this feature
Refer to the following information about additional forms and fields that you will use with this feature.
Form name and locator
Description
Parameters (form)
Activate extended features for India check box
General ledger > Setup > Parameters > Ledger tab
Select this check box to activate extended features
for India.
Parameters (form)
Companies act depreciation check box
General ledger > Setup > Parameters > Fixed assets
tab
Select this check box to activate depreciation as
per companies act feature.
Minimum number of working days for
seasonal industries field
Enter the minimum number of working days to
calculate depreciation on fixed assets for seasonal
industries.
Minimum number of working days for nonseasonal industries field
Enter the minimum number of working days to
calculate depreciation on fixed assets for nonseasonal industries.
Maximum acquisition value to avail full
depreciation field
Enter the maximum acquisition value for a fixed
asset to avail full depreciation. You can avail full
depreciation on a fixed asset in a specific year that
the fixed asset is used if the acquisition value of
the fixed asset is equal to or less than the value
specified in this field.
Note: Full depreciation is calculated if the
depreciation profile that is attached to the value
model that uses the Straight line percentage
method or Reducing balance method.
Fixed asset calendars (form)
Days field
General ledger > Setup > Fixed assets > Periods >
Fixed asset calendars
View or modify the total number of days in a
calendar period. The total number of days in a
period includes the starting date and ending date
that is defined for a calendar period.
Note: You only can modify the number of days in
the Days field to a value that is less than the
default value.
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Form name and locator
Description
When you delete a period, the previous period
and the total number of days are updated
accordingly.
Fixed asset calendars (form)
Days field
General ledger > Setup > Fixed assets > Periods >
Fixed asset calendars > Years button
View the total number of days in a year that is
defined for a fixed asset calendar. The total
number of days in a year includes the starting date
and ending date that is defined for a calendar
year.
Shift depreciation (form)
General ledger > Setup > Fixed assets > Depreciation
profiles > Shift depreciation button
Define rates that are used to calculate shift
depreciation for the Straight line percentage
method or Reducing balance method.
Shift depreciation (form)
From date field
General ledger > Setup > Fixed assets > Depreciation
profiles > Shift depreciation button > Overview tab
Enter the starting date to apply the shift
depreciation rates from.
To date field
Enter the ending date for the shift depreciation
rates.
Single shift percentage field
Enter the percentage to calculate depreciation for
a single shift. The single shift percentage is same
as the percentage of depreciation that is specified
in the Percentage field.
Note: If you create more than one record to
define different single shift rates, the rate that is
defined for the period that the system date is in is
displayed in the Percentage field.
Double shift percentage field
Enter the percentage to calculate depreciation for
a double shift.
Triple shift percentage field
Enter the percentage to calculate depreciation for
a triple shift.
Shift depreciation (form)
Depreciation profile field
General ledger > Setup > Fixed assets > Depreciation
profiles > Shift depreciation button > General tab
The depreciation that the shift depreciation rates
are defined for.
Shift depreciation (form)
Overview tab
General ledger > Setup > Fixed assets > Depreciation
profiles > Shift depreciation button
Define the shift depreciation rates for the
depreciation profile.
General tab
View the details of the shift depreciation record
that is selected on the Overview tab.
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Value models (form)
Override fixed asset calendar days check box
General ledger > Setup > Fixed assets > Value models
> General tab
Select this check box to override the number of
days that are defined for a fixed asset calendar
with the number of days that the asset is used for.
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Form name and locator
Description
Asset working days field
Enter the total number of days that the asset is
used for.
Shift depreciation (form)
General ledger > Setup > Fixed assets > Value models
> Shift depreciation button
Define the type of shift and industry for a value
model.
Shift depreciation (form)
From date field
General ledger > Setup > Fixed assets > Value models
> Shift depreciation button
Select the starting date to apply a specific type of
shift depreciation for a specific type of industry for
the value model.
To date field
Enter the ending date for the type of shift
depreciation.
Type of shift field
Select the type of shift for the value model from
the following options:
None: Select this option if shift depreciation does
not apply for the value model.
Single shift: Select this option to apply single shift
depreciation for the value model.
Double shift: Select this option to apply double
shift depreciation for the value model.
Triple shift: Select this option to apply triple shift
depreciation for the value model.
Type of industry field
Select the type of industry to apply a specific type
of shift depreciation for from the following
options:
Non-seasonal industry
Seasonal industry
Shift depreciation (form)
Overview tab
General ledger > Setup > Fixed assets > Depreciation
profiles > Shift depreciation button
Define the types of shift depreciation for the value
model.
General tab
View the details of the type of shift record that is
selected on the Overview tab.
Shift depreciation (form)
Value model field
General ledger > Setup > Fixed assets > Value models
> Shift depreciation button > General tab
The value model used to define the shift
depreciation.
Fixed assets (form)
Type of shift field
General ledger > Fixed assets > Value models button
> Inquiry button > Profile
Select the type of shift to view the projected
depreciation for. The options are Single shift,
Double shift, and Triple shift.
Item group (form)
Asset group check box
Inventory management > Setup > Item group >
Select this check box for a capital item to identify
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Form name and locator
Description
Overview tab
item group as capital asset group.
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