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Depreciation runs

Depreciation runs

Overview

The Depreciation Runs screen calculates, previews and posts the monthly depreciation of every active fixed asset in the selected company. The process has two steps: first you generate a preview (a draft) to review the amounts before confirming, then you post the run to leave the final entries in the Accounting period. Accounting and fixed asset control staff use this screen.

How to get there

In the side menu, expand Accounting and click Depreciation Runs.

URL path: /Accounting/depreciation

Key concepts

Term Definition
Depreciation run The process of calculating and recording depreciation for every active asset for one Accounting period.
Posting period The Accounting month and year (for example, 2025-06) depreciation is calculated for. It must be Open for the run to execute.
Preview A run in Draft status that calculates the amounts without touching official balances. It can be regenerated as many times as needed before posting.
Posting The action that freezes the draft's entries, locks the Accounting period and produces a journal batch in Pending status. Once posted, the run cannot be changed.
Opening NBV The asset's net book value at the start of the period: acquisition cost less accumulated depreciation plus revaluation adjustments.
Depreciation The depreciation amount calculated for the period, per the method configured on the asset.
Closing NBV The book value after the period's depreciation is applied.
Accumulated The asset's total accumulated depreciation (including the current period) since it was brought in.
Method: Straight-line Spreads the depreciable cost evenly across the asset's useful life.
Method: Declining balance Applies a factor to the book value, producing larger charges in the early years.
Method: Units of production Calculates depreciation from the units used in the period, recorded beforehand under Usage entry.
Status: Draft The run has been calculated but not posted. It can be replaced by a new preview for the same period.
Status: Posted The run has been posted. The period is locked and the entries are final.

How to use it

Generate a preview

  1. In the Posting period drop-down, select the Accounting period you want to calculate depreciation for (for example, 2025-06). Only periods created for the active company appear.
  2. Click Preview.
  3. The system calculates the amounts for every active asset whose in-service date is on or before the selected period. The notification "Preview generated." appears.
  4. Review the preview table below the form. It shows one row per asset with the columns Asset, Opening NBV, Depreciation, Closing NBV and Accumulated. The section header states the period's grand total.
  5. If you need to recalculate (after adjusting an asset's data, say), click Preview again. The previous draft is replaced automatically.

Note: Assets using the Units of production method only produce an entry if a usage record exists for the period on the Usage entry screen. With no usage recorded, the asset does not appear in the preview.

Post the run

  1. Once you have reviewed the preview, click Post (in the preview table's header).
  2. A confirmation dialog appears with the message: "Posting freezes the entries and locks the period. Continue?"
  3. Click Post Run to confirm, or close the dialog to cancel.
  4. On posting, the system:
    • Changes the run's status to Posted.
    • Locks the Accounting period (no further runs or changes are accepted).
    • Produces a journal batch in Pending status, debiting the depreciation expense account and crediting the accumulated depreciation account, grouped by asset category.
    • Marks as Fully Depreciated any asset whose accumulated depreciation reaches or exceeds its depreciable cost.
  5. The notification "Run posted successfully." appears. The preview table disappears and the run is recorded in the history below.

Review the run history

The lower table shows every depreciation run recorded for the active company, sorted by run date (newest first). You can sort by any column by clicking its header.

To refresh the list, click Refresh (the reload icon in the header's top right).

Fields

Period selection form

Field Type Required Description Validation
Posting period Drop-down Yes The Accounting period (Year-Month) depreciation will be calculated for. Only periods configured for the active company are listed, newest first. A period must be selected before Preview can be clicked. The period must be Open; if it is locked, the system shows an error.

Preview table (columns)

Column Description
Asset The fixed asset's code.
Opening NBV Net book value at the start of the period (numeric, two decimals).
Depreciation The depreciation amount calculated for the period.
Closing NBV The book value after the period's depreciation is applied.
Accumulated The asset's total accumulated depreciation including the current period.

Run history table (columns)

Column Description
Year The run's Accounting year.
Month The run's Accounting month.
Run Date The date the run was executed (the same as the period's end date).
Status The current status: Draft or Posted.
Total The total depreciation across every asset included in the run.
Entries The number of entries (Assets) included in the run.

Permissions

Available to users with access to the module, as configured by your administrator.

Notes

  • Accounting periods required: to run depreciation, the company must have at least one Accounting period Open. Periods are managed under Accounting > Periods.
  • GL account codes: on posting, the system uses the GL account codes configured on each asset model (the depreciation expense account and the accumulated depreciation account). If a model has no codes configured, posting fails with an error naming the model affected.
  • Units of production Assets: for these Assets to appear in the preview, the period's usage must be recorded under Accounting > Usage entry before you generate the preview.
  • Revaluations and impairments: the calculation engine automatically incorporates revaluation or impairment adjustments dated on or before the period's end, affecting the book value the calculation starts from.
  • Fully depreciated Assets: on posting, the system automatically sets the status to Fully Depreciated on Assets whose accumulated depreciation reaches the depreciable value (cost less salvage value).
  • Journal batch: posting produces a batch under Accounting > Journal batches in Pending status. Review it there for approval or integration with CifraHQ.

Troubleshooting

Symptom Likely cause Resolution
The Posting period drop-down is empty. No Accounting periods have been created for the active company. Go to Accounting > Periods and generate the Accounting periods you need.
The Preview button stays disabled. No posting period has been selected. Select a period in the drop-down before continuing.
The preview table is empty ("No depreciation entries for this period."). There are no active Assets with an in-service date on or before the period, or they are all fully depreciated, or the units-of-production Assets have no usage recorded. Check that active Assets with remaining useful life exist. For units-of-production Assets, record the period's usage under Usage entry.
Posting error: "Posting period is not open". The selected period was locked (it already has a posted run). Check the period's status under Accounting > Periods. Each period accepts only one posted run.
Posting error naming an asset model ("Asset model [...] is missing GL account codes"). One or more Asset models have no depreciation GL account codes configured. Go to Master > Asset models, edit the model named in the error and fill in Depreciation Expense Account Code and Accum. Depreciation Account Code.
Assets using Units of production do not appear in the preview. No usage has been recorded for that asset in the selected period. Record the units used under Accounting > Usage entry before generating the preview.

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