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Depreciation, that is, depreciation, is the expense share that can be shown in cases such as wear and tear of the assets purchased by businesses for use. Over time, many items begin to deform due to their structure and their economic value decreases. Therefore, expenses and values of assets should be recorded throughout their economic life.

Path: ERP > Financial Accounting > Fixed Asset > Depreciation and Valuation

Note: Fixed assets are assets subject to depreciation. In order for fixed assets subject to depreciation to be considered fixed assets, they must meet certain criteria,

The assets must be owned by the business. For example, a leased fixed asset should not be shown as an asset.
It must be for the benefit of the business.
The benefit must be at least one year.

Depreciation Listing Screen

On the Depreciation and Valuation listing screen, the update screens of the recorded valuations are accessed with the pencil icon. You can go to a new valuation record screen with the plus icon. Valuation can be viewed on the excel screen with the bring to excel icon.

Attention: The law determines the useful life of fixed assets. In the Workcube interface, fixed assets are evaluated with two depreciation methods.

For example; We bought a machine worth 100 TL, let it last 5 years. We can depreciate using 2 methods.

1. Fixed Amount - Standard
Purchase Value / Useful Life
100 TL / 5 = 20 TL
20 TL depreciation is allocated every year.

2. Diminishing Balance
Divide the year of useful life by 100%.
100% / 5 years = 20% and multiply this figure by 2 when calculating depreciation to calculate depreciation.

Year Depreciation Calculation = Purchase Value x ((100% / 5) x2)
Year Depreciation Calculation = (First year's value - 1st year's Depreciation) x ((100% / 5) x2)

Each year based on the remaining value from the previous year [180 ]

Year		Amount		Depreciation		Accumulated Depreciation
1st year		100 = A		40 = B = A x (%20x2)		40 = B
2nd year		60 = D = A-C		24 = F = D x (%20x2)		64 = B+F
3rd year			14.4	[1 95]	78.4
4th year	[ 209]	21.6		8 .64		87
[23 8]5th year		1,296	[ 252]	1.2296		100[ 266]

Depreciation and Valuation Record Screen

1. In the section;

In this area, assets are listed with listing options. The date range during which the assets are received is determined. The date on which the transaction will take place is a mandatory field. Period selection must be made during the accounting period. The asset is recorded in a fixed asset account as a fixed asset. By selecting the account, the relevant assets are listed.

Attention: In the account period information, the period definitions entered in the purchase and transfer transactions in the documents are displayed. If the depreciation period is 12 in the annual valuation, it is made once a year. For the second year, a carryover must be made to the next year.

Note: At the end of each year, the state determines the amounts to be included in the depreciation calculations for the next year. The depreciation limit is generally the same as the invoice issuance limit. VAT amount is excluded from depreciation rate calculations.

After filling in the relevant fields, the relevant assets are listed by clicking the "Search" button. The old and new values of the listed assets for the period are seen.

2. Section;

Transaction type is selected.

If the debtor and credit account is not entered while recording the assets, it must be entered in this field.

Finally, new values of the assets are created by clicking the "Value" button.

Note: Depreciation Not Allocated for the First Year in Xml Settings Continue Separate in Consecutive Years Setting If yes, the depreciation that is not allocated in the first year subject to pro rata depreciation is allocated in the last year. This setting, if there is any remaining partial depreciation amount in the previous period, adds the remaining partial depreciation amount with the last value of the asset when the valuation is made in the next year and changes the last value of the asset. Valuation is done based on this last value.

Attention: For example, the valuation of February has been made, after making the valuation of March, the update and delete buttons will not appear on the valuation screen of February, the valuation will be closed automatically. In order to edit, the next transaction can be deleted by deleting it.

Recommendation: For fixed assets that have been subject to valuation, the current value of the relevant fixed asset can be determined by increases and decreases in value. To get detailed information, you can read our article "Maintenance and Repair Expenditures that Cause Increase-Decrease in Value".

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About Workcube Objects

Depreciation and Valuation

Depreciation and Valuation page is the screen where existing fixed assets are valued according to selected criteria. It is done at certain intervals according to the given periods.

Type: WBO Version: Catalsyt v5 Licence: Standard Author: Workcube Core