This topic explains how to set up half-yearly depreciation, so that you can apply half the yearly depreciation for fixed assets that are sold or otherwise disposed of.
When a fixed asset is sold or otherwise disposed of, you can apply half the yearly depreciation for the asset, for tax purposes. This half-yearly depreciation can be applied regardless of the disposal date.
Set up depreciation methods for the depreciation profile
Use the Regular CZ and Accelerated CZ depreciation methods to apply half-yearly depreciation for a fixed asset.
- Click Fixed assets > Setup > Depreciation > Depreciation profiles.
- Click New to create a depreciation profile.
- In the Method field, select Regular CZ or Accelerated CZ.
- In the Depreciation year field, select Calendar as the basis for the calculation of depreciation.
- In the Period frequency field, select Yearly.
Apply the halfyearly depreciation method
After you set up the depreciation methods, you can apply half the yearly depreciation for assets that were disposed of.
- Click Fixed assets > Journals > Fixed assets.
- On the Overview tab, click New to create a journal, and then enter the required details.
- Click Lines to open the Journal voucher page.
- Create a journal line for the fixed asset that was sold or otherwise disposed of.
- Click Proposals > Depreciation proposal to open the Depreciation proposal page.
- In the To date field, enter the journal date.
- Select the Calculate half-year depreciation amount check box to calculate half-yearly depreciation. When this check box is selected, the yearly depreciation amount is divided by two and rounded according to the rounding setup for the depreciation book.
- Optional: Select the Summarize depreciation check box to summarize the calculated depreciation for each fixed asset or for each value model.
- Click OK to close the Depreciation proposal page.
- Post the journal.