How do I make Depreciation Adjustment?

Sample of Adjustments to Bar|Scan depreciation:

Example One: “Catch Up Depreciation”
What if asset is placed in service but cost is not available for depreciation data entry until after month closes? For example, you issue a Purchase Order for a server. A server is delivered and installed at the beginning of June. Vendor want to renegotiate price after delivery due to unforeseen circumstances. Negotiations take 2 months. You and Vendor agree on $100,000. June books are closed. It is now August.

Asset has a 5 year life (60 months). Monthly depreciation schedule should look like this:

Run Bar|Scan depreciation to get 2 months to post to GL. Go into Bar|Scan depreciation history and manually set month 1 and 2 to zero. Manually triple current month.

Example Two:
Paid 90% of the invoice. Entered these amounts into Bar|Scan and calculated depreciation. Two months later pay an additional 10% (e.g. installation cost). So we want to Bump up 3rd month of life so that the first 3 months average to $30 and spread the final amount over the remainder of the asset’s life. For example: $2,700 (original invoice) $3,000 final invoice amount (assume 10 periods).

Monthly depreciation schedule should look like this:

Entered asset with $2,700 cost, skipped two periods, entered $300 into “Additional Cost” Field. Manually changed “Deprec. Monthly” for that month to $360.00. skipped 10 periods, recalculated.

Example 3:
A Bank Branch will be closing prior to it’s expected lease termination. The remainder of Leasehold improvements need to be written off on an accelerated schedule. Original depreciation was according to the lease term, say 10 years but now 3 years into the lease, management decides to close this Branch after 5 years. So you take the remainder of depreciation over the next 2 years. The Depreciation Schedule for a $100,000 improvement would look like this:

Entered asset with $100,000 cost and 120 periods (5 years), skipped three years, and calculated depreciation. As expected, depreciated at $833.33 per month ($10,000 per year). Changed “Life” to 60 periods and advanced periods. Bar|Scan increased depreciation to $2,916.67 per month ($35,000 per year) as expected.

Disclosure: Customer agrees that Bar|Scan, Inc. assumes no liability as to the validity and acceptance of any depreciation methodology and it’s conformance to GAAP or IRS standards. Bar|Scan, Inc. does not provide accounting or tax advice.