Hello @NickPorter 

Depreciation start date depends on depreciation method of the fixed asset. You can see various starting principles that a depreciation method might have.

If the starting principle is acquisition date then you can select the acquisition date while activating fixed asset. If assigned date then the date must be given on the books tab. The others are clear I believe.

Hope this helps

Thank you @gumabs .  I don’t see anything in there that really speaks to PO release date or Receipt date… what date would the Assigned Period or or Beginning of period use for consideration? 

As an example, since we are in Cloud, a sample Depreciation Method looks as follows.  I understand the idea of the Starting Principle for the depreciation but I have no idea what “date” it uses as the reference point.

I hope my question makes sense and I appreciate your help.

Thanks!

Nick

Hi again @NickPorter 

In case of assigned period, year/period from assigned date (which is entered on books tab) will be considered as depreciation start date. 

Beginning of period means that year/period from acquisition date (which is entered while activating object) will be considered as depreciation start date. 

I dont recall any functionality from PO that drives depreciation start. In any case, depreciation starts once object is activated. PO release would only create the object in investment status ONLY if the purchase group of non-inventory part or purchase group of no part order line is matched with any of object groups. The purchase group must be added in below window for any of object groups.

Hope this helps

Hi @NickPorter ,

let me just add that by design it is possible that a FA Object has more than one transactions before it is ready for use (to be activated).

E.g. You buy machine and the machine will be invoiced by supplier A and the delivery cost will be invoiced by supplier B and finally setup cost will invoiced by supplier C. All the invoices might have different dates. Neither the PO Release Date nor the Receipt Date will be a valid date for the start of the depreciation for this object.

Pretty often the activation date for the object is when it is ready for use. In the case above when the machine is setup. This date can be connected to the last invoice but also other start dates can apply.

Thats why the activation needs to be done manually and a date must be entered.

Depending on the starting principle setup in the the depreciation method, the depreciation will start accordingly.

E.g. you enter 2023.04.15 as Acquisition Date with the starting principle 

“beginning of period” it starts with Apr 1st. 

“beginning of year” it starts with Jan 1st. 

“middle of the year” it starts with Jul 1st.

the pricinples “assigned date” -period” … require an entry Fixed Asset Object / Books 

I hope thats explains the idea behind it.
Regards
Ralph

Thanks for the very clear description @Ralph Gericke.  This was my (non-finance-person) understanding originally, which is why I wanted to check when told about the PO release date driving it.  PO Release action doesn’t make sense even just given things like long delivery lead times.

Thanks,

Nick