About summarized depreciation postings—Fixed Assets Management
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Summarizing depreciation reduces General Ledger volume by combining depreciation postings from multiple assets into fewer journal entries. This makes depreciation activity easier to review and reconcile.
How it works
When summarization is turned on, Fixed Assets Management groups depreciation postings from multiple assets into a summarized journal entry if they share the same journal and actual posting date.
If additional depreciation entries are posted later with the same journal and actual posting date, Fixed Assets Management updates the existing summarized journal entry to include them.
If the journal or actual posting date differs, Fixed Assets Management creates a separate summarized journal entry.
When summarization is turned off, each depreciation entry creates a separate journal entry.
Setup
To summarize depreciation, turn on summarization in Fixed Assets Management configuration.
You can turn this setting on or off at any time. Changes apply only to future depreciation postings.
Learn how to turn on summarization.
Journal entries for summarized depreciation
A summarized journal entry reflects the combined depreciation amounts for all included depreciation entries. Typically, the journal entry debits the Depreciation expense GL account and credits the Accumulated depreciation GL account. Depending on the depreciation method, the journal entry might include additional lines, such as derogatory provision or reversal.
Within a summarized journal entry, depreciation amounts are combined on the same line only when all of the following match:
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GL account
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Debit or credit type
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Dimensions
The journal entry also contains the following information:
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Description: "Depreciation expense: [Date] summary", where [Date] is the actual posting date
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Dimensions: All dimensions copied over from the assets included in the summary, excluding the asset dimension.
Four depreciation entries, each with an amount of 375.00, share the same journal, actual posting date, GL accounts, and dimensions. Instead of creating four separate journal entries, Fixed Assets Management summarizes them into a single journal entry. Because the GL accounts and dimensions match, the journal entry contains two lines:
| GL account | Debit ($) | Credit ($) |
|---|---|---|
| Depreciation expense | 1,500.00 | |
| Accumulated depreciation | 1,500.00 |
Four depreciation entries, each with an amount of 375.00, share the same journal and actual posting date. As in Example 1, Fixed Assets Management summarizes them into a single journal entry. However, two depreciation entries are assigned to Engineering and two are assigned to Accounting. Because the Department dimension differs, separate lines are created within the summarized journal entry.
| Department | GL account | Debit ($) | Credit ($) |
|---|---|---|---|
| Engineering | Depreciation expense | 750.00 | |
| Engineering | Accumulated depreciation | 750.00 | |
| Accounting | Depreciation expense | 750.00 | |
| Accounting | Accumulated depreciation | 750.00 |
Viewing journal entries
To view journal entries related to a depreciation period, select the Journal entries link on any of the following pages:
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Depreciation Schedule
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Post Depreciation
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Bulk Action Run
The link opens a list of all related journal entries, including depreciation expense and reversal entries. Select a transaction number to view the details of a specific journal entry. Select a Base debit or Base credit amount within the journal entry to view the depreciation entries associated with that amount. If the journal entry is a summary, there will be more than one associated depreciation entry.
Correcting summarized depreciation
You can correct depreciation entries that are included in a summarized journal entry using the same process as other depreciation entries, either by reverting or reversing the entry, depending on your configuration.
When you revert a depreciation entry included in a summarized journal entry, the journal entry is updated to remove the amounts associated with the reverted depreciation entry. If all depreciation entries in the summarized journal entry are reverted, the summarized journal entry is deleted.
When you reverse a depreciation entry included in a summarized journal entry, the summarized journal entry is not updated. Instead, Fixed Assets Management creates a separate reversal journal entry to offset the original depreciation posting.
