6 - Creating Depreciation Journal Entries

Once you have created your Fixed Asset Masters with booked Cost,  you are ready to begin creating periodic Depreciation Journal Entries.  You may choose any schedule for booking the Depreciation entries that follows your company policy.  You will want to book depreciation in the final month of each Fiscal Year to ensure the full current year depreciation amount is booked for your tax records.

RIMSS uses the following calculations for creating the Depreciation entries:

Depreciable Basis = Cost - Salvage Value

Depreciation Amount = (#Months since Depr. Start Date * (Depreciable Basis / Useful Life)) - Accumulated Depreciation

*If the total months since the Depr. Start Date is greater than the Useful Life, RIMSS will use the Useful Life and depreciate the asset to $0.00 + Salvage Value.

Creating Depreciation Journal Entries

Navigate to: Fixed Assets > New > Depreciation Journal

RIMSS will populate a new Depreciation Journal with the Last Depreciation Date completed in RIMSS and the new Depreciation Date at the end of the current month.  You may change the date for This Depreciation Date if applicable.  The date must be the last day of the month through which you want to calculate depreciation.  You may add a memo if applicable.

Click on Calculate Depreciation once you have verified your dates are correct.

After Calculating Depreciation, the document will populate with all active fixed asset masters and show the details of the depreciation to be booked.  Click Save or Save and Close to save the Depreciation Journal and book the depreciation.  The entry will be posted on the date entered to the "This Depreciation Date" field.  You may enter a past, current, or future date on these entries.

The Depreciation Journal is also your detailed depreciation report.  There are many columns included on this document to assist you in reviewing the asset depreciation details for all active assets as of the date of the entry.