Depreciation Tracking

Ensure accurate financial reporting by calculating periodic depreciation and monitoring each asset’s book value—so you maintain up-to-date asset valuations and audit-ready records in the CGIC App.

What it does:

• Runs scheduled depreciation for each asset based on its category’s depreciation method (Straight Line or Reducing Balance).
• Updates each asset’s Accumulated Depreciation and Book Value automatically.
• Generates reports that display current asset values, depreciation schedules, and historical depreciation entries.

Prerequisites

• Asset records have been created under Assets > Asset List (with correct Asset Cost and Purchase Date).
• Each asset is linked to an Asset Category under Assets > Asset Category List, with a defined Depreciation Method and Useful Life (Months).
• Depreciation expense and accumulated depreciation accounts are configured under Accounts > Chart of Accounts.
  • Cost Centers or Departments are defined if you need to allocate depreciation by location or business unit.

Step 1: Verify Asset and Category Settings

1. Navigate to Assets > Asset Category List.
2. For each category, confirm settings:
   • Depreciation Method: Straight Line or Reducing Balance.
   • Useful Life (Months): the asset’s expected service duration.
   • Salvage Value (%): the percentage of original cost remaining at end of useful life.
3. Click Save if you make any changes.

If you need to change a depreciation method mid-life, create a new category version and reassign assets accordingly—maintaining historical accuracy.

Step 2: Run Scheduled Depreciation

1. Navigate to Assets > Depreciation > Run Depreciation.
2. In the Run Depreciation dialog, set:
   • Company: your legal entity.
   • Depreciation Date: the date up to which depreciation should be calculated (e.g., month‐end).
   • Asset Category (Optional): limit depreciation to a specific category; leave blank to process all active categories.
3. Click Run. CGIC will:
   • Calculate depreciation for each qualifying asset based on its cost, accumulated depreciation, useful life, and method.
   • Post ledger entries:
     • Debit Depreciation Expense account.
     • Credit Accumulated Depreciation account.
   • Update each asset’s Accumulated Depreciation and Book Value fields.
4. Review the Depreciation Ledger Entries in the pop-up or under Accounts > General Ledger to ensure accuracy.

Schedule this process monthly or quarterly to align with your financial close cycle.

Step 3: Review Asset Book Value and Depreciation History

1. Go to Assets > Asset List and locate an asset you wish to inspect.
2. Click the asset’s Asset Code to open its profile.
3. In the Financials tab, review:
   • Asset Cost (original purchase price).
   • Accumulated Depreciation (to date).
   • Book Value (Cost − Accumulated Depreciation).
4. Click Depreciation Schedule (or View Depreciation History) to see a detailed list of all past depreciation entries:
   • Date of each run.
   • Depreciation Amount recorded.
   • Ledger Entry Reference (for audit linking).
5. If you need to correct a depreciation run (e.g., wrong date or amount), click Actions > Reverse Depreciation for that entry, then rerun depreciation with the correct parameters.

Step 4: Run Asset Valuation Reports

1. Navigate to Assets > Reports > Asset Register Report.
2. In the filter panel, set:
   • Company: your legal entity.
   • As on Date: the date for book value reporting.
   • Asset Category or Location (Optional): narrow to a specific class or department.
3. Click Refresh. The report will show:
   • Asset Code and Name.
   • Asset Cost, Accumulated Depreciation, and Book Value as of the specified date.
   • Depreciation for Period (if you include a date range filter).
4. To analyze trends, export via Download > CSV and plot in your financial system or Excel.

Use this report during physical audits to reconcile recorded book values with floor inventory.

Step 5: Monitor Depreciation Over Multiple Periods

1. Click Assets > Reports > Depreciation Schedule Report.
2. Set filters:
   • From Date / To Date: the range for which you want depreciation details (e.g., January–June 2025).
   • Asset Category: specific category or leave blank for all.
3. Click Refresh. The report displays:
   • Asset Code and Name.
   • Depreciation Date for each run.
   • Depreciation Amount posted each period.
   • Book Value after each run.
4. Analyze how cumulative depreciation evolves. Export to CSV or PDF for management review.

Identify assets with accelerating depreciation (in Reducing Balance) versus straight‐line trends to inform replacement budgeting.