Depreciation Book Set up NAV 2009

Depreciation Books

The Fixed Assets must have a Depreciation Book, to record depreciations to the fixed assets.
The Depreciation Books must be set up on the Depreciation Book Card.
To open the Depreciation Book Card, in the Navigation Pane; click Departments > Administration > Application Setup >Financial Management > Fixed Assets > and then select Depreciation Books.

NAV 2009 allows for multiple depreciation books and to set up to additional books on the card.
After the depreciation book is set up, one of more depreciation books are attached to an asset, to define how depreciation will be handled for the assets.
General FastTab

The General FastTab contains the basic setup fields for the depreciation books:
  • Default Final Rounding Amount – makes sure that the fixed asset is fully depreciated over the depreciable lifetime.
  • Default Ending Book Value – prevents the asset from being fully depreciated.
  • Disposal Calculation Method – specifies Net or Gross as the method.
  • Sebstract Disc. In Purch. Inv. – displays the line and invoice discount that will post to the account contained in the Purch. FA Disc. Account field in the General Posting Setup window.
  • Allow Changes in Depr. – indicates that the depreciation fields in the FA Depreciation Books are changeable after you have posted entries.
  • Allow Depr. Below Zero – indicates that the system will continue calculating periodic depreciation when the Calculate Depreciation batch job continues, even is the book value of the fixed asset is zero or negative.
  • Allow Correction of Disposal – corrects fixed ledger entries of the type Disposal.
  • Allow Indexation – adjusts the asset values for general proce-level changes. Use this option to calculate the value of fixed assets at replacement costs. Do not finish indexation with FA ledger entries that are posted to the general ledger.
  • Use FA Ledger Check – requires a confirmation that :
    • Acquisition cost is the first cost books as a debit and that the disposal cost is the last cost books.
    • Depreciable basis has a debit balance, and that the book value is a debit.
    • Accumulated depreciation, salvage value, and accumulated sales price are all credit balance.
  • Use Rounding in Periodic Depr. – indicates that the system will round depreciations to while numbers.
  • Use Same FA and G/L Posting Dates – indicates that both dates must differ is these options are cleared. Enter both dates separately.
  • Allow more that 360 Depr. – gives the possibility for the fiscal year to consist of more than 360 depreciation days.
Integration FastTab

The Integration FastTab specifies entries to integrate with the general ledger. Enter only one depreciation book to the general ledger so that it does not post two times.
Select the field of the relevant posting type, or types, of FA transactions that must integrate with the general ledger.
If a company wants to use General Ledger Integration, use the FA G/L Journal to record the information. If a Company do not wan to use the General Ledger Integration, use the FA Journal.
Duplication FastTab

Use the Duplication FastTab to indicate duplicate entries in other depreciation books. This is useful when a company uses multiple depreciation books and, when setup, will create the same entries for all the books to reduce data entry time.
The Duplication FastTab contains the following fields: 
  • Part of Duplication List – indicates that the depreciation book will be a part of the duplication list.
  • Use FA Exch. Rate in Duplic – indicates whether to use echange rates when you duplicate entries from one journal to another.
  • Default Exchange Rate – specifies the default exchange rate.
Reporting FastTab

On the Reporting FastTab an additional foreign currency rate can be allowed for the posted transactions.
NOTE: You do not have to type an additional reporting currency of select these options if you are not already using an additional reporting currency in the general ledger that has a fixed exchange rate, such as EUR.

All entries from the FA module calculate in the correct additional currency in the associated general ledger entries. You only need this additional reporting currency if the additional currency is variable (with a changing exchange rate).

If it is variable, there is a risk that the FA book values will never balance if the additional currency was adjusted. This is the reason to fix the exchange rate of the additional variable currency in the FA module for each fixed asset.
FA Posting Type Setup

Use the FA Posting Type to define how NAV 2009 manages posting types as Write-Down and Appreciation, and then posts to fixed assets.
To open the FA Posting Type Setup page in the Depreciation Book Card > Related Information > point to Depr. Book > FA Posting Type Setup.
NAV 2009 contains a default setup. It is not possible to add or delete lines in this page. However, the existing lines can be changed.
FA Journal Setup

The FA Journal Setup page specifies the defaults setup of templates and batches that NAV uses to duplicate lines from one journal to another, when the Calculate Depreciation of Index Fixed Assets batch jobs create journal lines, or when acquisition costs duplicate in the Insurance Journal.
To open the FA Journal Setup page in the Depreciation Book Card: Click Related Information > point to Depr. Book  and then select FA Journal Setup.

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Dan Winter

Dan is Support Consultant at Metaphorix

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