How to run depreciation for fixed assets in iplicit?

This article covers how to run depreciation for fixed assets in iplicit's Fixed Assets module. Depreciation reduces the book value of a capitalised asset over its useful life and creates journal entries in the General Ledger. iplicit calculates depreciation automatically based on the method and schedule set on each asset. You trigger the calculation by running the depreciation automation, either manually or via a scheduled run.

Before you start

An asset must be capitalised before depreciation can be processed against it. Confirm the following are also in place before running the depreciation automation:

• The 'Asset Depreciate' (ASSDEP) document type is unlocked
• A document series is active, unlocked and dated before the asset's purchase date
• Both the 'Depreciation charge' and 'Depreciation' account defaults are configured for the asset group

See How to set up document types and series for fixed assets in iplicit and How to configure account defaults for fixed assets in iplicit.

Running the depreciation automation

1. Navigate to the depreciation automation - this is accessible from the automation screen
2. Set the 'Date from' field - this controls which periods are included. If you want to capture depreciation for a period earlier than the pre-populated date, set the date back manually
3. Use the available filters to run depreciation for all assets at once, or narrow to a specific asset, asset group, or legal entity for a singular run
4. Tick 'Submit' if you want the resulting journals to be submitted automatically; if left unticked, journals will be created in draft and must be submitted manually from the Asset Journals screen
5. Select 'Run'.

iplicit generates depreciation journals for all qualifying assets within the selected date range.

Reviewing depreciation journals

All asset-related journals - including depreciation - are visible on the Asset Journals screen.

1. Navigate to Asset Journals from the Main Menu, or enter 'Asset Journals' in the quick search
2. Review journals created by the depreciation run
3. If 'Submit' was not ticked when running the automation, select the relevant journals and submit them from this screen

Note: asset journals cannot be edited in draft. The only correction available after posting is to amend posting attributes. Individual journals cannot be unposted - if a correction is needed after posting, use the 'Uncapitalise' function on the asset record to reverse all transactions and start again.

Viewing the depreciation book

Once depreciation journals are posted, the running depreciation values update on the asset record.

1. Open the asset record from Asset 
2. Select the 'Depreciation book' tab to see the full depreciation schedule and posted values

Scheduling depreciation to run automatically

The depreciation automation can be set up as a scheduled event so it runs monthly without manual intervention. Set this up via the scheduler to avoid needing to trigger it manually at each period end.