Calculate Fixed Asset Depreciation

Generate Depreciation Journals

1. Navigate to Fixed Assets.
2. Select one or more fixed assets.
3. Click Calculate Depreciation.

The Month End Date defaults to the last day of the previous month. You can change this date if needed.

4. Verify the Month End Date.
5. Click Calculate Depreciation to generate depreciation journals.
6. Review the generated Fixed Asset Journal(s) for accuracy.
7. Post the journal(s) manually when ready.

Depreciation Calculation Logic

GoldFinch creates one Fixed Asset Journal per GL Ledger.

The New Depreciation Amount is calculated as:

Total depreciation from the Depreciation Start Date through the selected Month End Date, minus any depreciation amounts previously posted.

Catch-Up Depreciation

If depreciation was not calculated in prior months and those periods are already closed, GoldFinch automatically catches up the missed depreciation in the current period.

This ensures that accumulated depreciation remains accurate even when prior depreciation runs were skipped.

Partial Month Handling

If the Depreciation Start Date falls mid-month, GoldFinch rounds the depreciation period to a full month.

Example

• Depreciation Start Date: 12/15/2025
• Month End Date: 02/28/2026

Depreciation is calculated for 3 full months:

• December 2025
• January 2026
• February 2026

Depreciation Adjustments

In some situations, you may want to use a specific depreciation amount for a period instead of the system-calculated amount.

To adjust the calculated depreciation, enter a value in the Depreciation Adjustment Amount field on the Fixed Asset record. The adjustment will be applied the next time depreciation is calculated.

Notes

• Enter a positive value to increase the calculated depreciation amount.
• Enter a negative value to reduce the calculated depreciation amount.
• If the adjusted depreciation amount is less than zero, the system will automatically set it to 0. Negative depreciation amounts are not allowed.

Examples

Example 1 – Reduce the depreciation amount

• Calculated depreciation: 1,000
• Depreciation Adjustment Amount: -100
• Final depreciation amount: 900

Example 2 – Adjustment exceeds the calculated amount

• Calculated depreciation: 1,000
• Depreciation Adjustment Amount: -1,100
• Calculated result: -100

Because negative depreciation amounts are not allowed, the system automatically changes the depreciation amount to 0 and does not create a Fixed Asset Journal entry.

Remaining Amount Protection

GoldFinch ensures that the calculated depreciation amount never exceeds the asset's Remaining Amount.

This prevents over-depreciation and ensures that the asset's net book value does not fall below its allowable remaining balance.