How do I start depreciation?

To do a depreciation calculation you need to fill in the following fields as a minimum on the Depreciation Tab of the Asset Screen:

• Method
• Life
• Start Date
• Last Calc Date

If any of the above fields are cleared or changed, then the Depreciation calculation will not be done.  The following fields are also essential but have default values, so they do not have to be filled in.

• Period Type
• First Fiscal Month

The following fields do not have to be filled in, but if they are, it will affect the depreciation calculation.

• Disposal Date
• Initial Depreciation Start Date
• Initial Depreciation End Date
• Initial Depreciation Accumulated
• Purchase Cost
• Tax
• Installation
• Freight
• Additional Cost
• Salvage Value

If you want to use the Depreciation History, then you have to put a check mark in the “Use Depreciation History” check box.

It does not matter when you check it, with the one following exception:  If it is already checked ‘on’, then any entry into the “Last Calc Date” will automatically add entries into the Depreciation History list.  If you make a mistake and first put in a date later in time, then correct it to an earlier date, the entries for the later of the two dates will still be in the Depreciation History list as entries, since Depreciation History entries are never deleted unless deleted by hand.

Assuming that all fields are filled in properly to activate depreciation, there is only one field change needed to advance to the next month, that is, enter the new date into the “Last Calc Date” field.

Hint: You can use the Range Feature to select all assets and enter the new Date in this field, thereby updating depreciation for all assets.

Sometimes a user may advance the “Last Calc Date” and not see the expected results in the depreciation.  This is normally due to one of the following reasons:

• They have entered a value or a date in the “Initial Depreciation” field (also on the Depreciation Tab).  This will skew the expected values, subtracting the initial amount and doing an adjusted depreciation from the Start Date to the End Date.
• Depreciation has been completed.  You will see a check mark in the “Fully Depreciated” box.
• There is an incorrect value in the Life, Method, Period Type or First Fiscal Month.
• There is a date entered into the “Disposal Date” field.  Depreciation stops upon entering a Disposal Date.
• The asset is being leased.

A couple of items:

1. You can make multiple copies of your BarScan databases.  If you have the Multiple Database Module, perform a Company ‘save-as’ command.   If you do not have the module,  you will need to close BarScan and then using Windows Explorer and the Windows Copy command and copy the entire “company” folder.  When completed, you can rename the copied folder, i.e. “test phase 1”, etc.  You can even rename each company using the File-> Company-> Rename command.  This will make it less confusing.
2. It is recommend that you display the entire folder path when using more than one company.  From the Main Menu select Edit-> Personal Program Preferences.  Click on the “Miscellaneous” tab and check mark the “Display Directory Path”.
3. The “Last Calc Date” is usually the month that you want to depreciate to (ending date).  You Range the entire Asset Table then change the month and press the save key.  This advances depreciation for all assets.  Note that this process is independent of the computer’s system date so you can take as much time as required to complete a month’s data entry.
4. The depreciation start date is usually the date that the asset is placed in service, which can be the same as the receive date, but this is an accounting policy matter and can vary based on your own policies.
5. Normally the fields on the Initial Depreciation Section are not used unless BarScan is unable to duplicate the prior depreciation. Sometimes there are differences of a few pennies or dollars, depending upon rounding differences.  If it is needed to be exact and the numbers do not match then an initial amount will need to be entered.  The ONGOING fields are entered the same, whether or not there is an initial amount. The ongoing screen has how BarScan will be depreciating the amount.