Set up scheduled depreciation reconciliations

Scheduled depreciation allows you to automate asset depreciation based on standard accounting methods. When setting up scheduled depreciations, you can choose from the following options:

Straight Line

What it does: Spreads the depreciable base (Asset Cost – Salvage Value) evenly over the useful life of the asset.

When to use: Recommended when an asset provides consistent value over time, such as office furniture or buildings.

Benefit: Simple to apply and ensures predictable expense amounts each period.

Double Declining Balance

What it does: Applies a higher depreciation rate in the earlier years of the asset’s life, reducing over time. This is an accelerated depreciation method.

When to use: Best suited for assets that lose value quickly or become less efficient with age, such as technology or vehicles.

Benefit: Matches higher expenses with earlier years of use, reflecting faster decline in asset value.

Half-Year Convention

What it does: Applies only half a year’s depreciation in both the first and last year of the asset’s life, regardless of purchase or disposal date.

When to use: Often required by accounting standards or tax rules when assets are not used for the full year in the first or last period.

Benefit: Provides compliance with common depreciation conventions and ensures more accurate allocation across partial years.

Set up scheduled depreciation

To use any of the scheduled depreciation methods (Straight Line, Double Declining Balance, or Half-Year), an Admin must first complete some setup in the application. The process includes:

  1. Setting up a schedule layout for depreciation – Define the structure used to calculate and display depreciation values.

  2. Creating account groups – Ensure the group contains exactly two accounts: one debit and one credit.

  3. Creating a workflow task – Assign and manage the depreciation process within a task for tracking and approval.

After these steps are completed, the system will automatically calculate and distribute depreciation based on the chosen method.

Set up a depreciation-schedule layout

  1. Navigate to . The Period Setup page opens, showing existing periods.

  2. Select an open period.

  3. Click the Layouts tab.

  4. In the Type field, select Schedule - Depreciation.

  5. For Depreciation method, select one of the following:

    • Straight line

    • Double decline

    • Half year

    The following fields are required for a Schedule - Depreciation type layout:

    • Name

    • Start Date

    • End Date

    • Duration

    • Debited Account

    • Credited Account

    • Starting Balance

    • Salvage Value

  6. Optionally, add an attachment field to allow preparers to upload attachments directly when entering schedule items.

  7. Save the layout.

Create account groups

To use scheduled depreciation, you must:

  • Create an account group with exactly two accounts:

    • Debit account

    • Credit account

       Note:  If more than two accounts are selected, or if both accounts are not debit and credit, the system displays an error.

  • Use Schedule for the Reconciliation policy.

Create a workflow task

After you have created the account group using the Schedule

  1. Navigate to the Workflows tab.

  2. Create a Workflow Task using the account, just as you would any other Account Reconciliation type task. For details on creating workflow tasks, see Add and manage workflow tasks.