Asset Accounting: Acquisitions, Depreciation and Retirements

Keep this: job aid

Asset lifecycle checklist

• Right asset class first: it drives accounts, number range and defaults.
• Per depreciation area: key, useful life, start date; check class defaults.
• Acquisitions post all areas in real time; technical clearing account must be zero.
• Asset value date + period control = depreciation start.
• Settle AuCs when assets are ready for use; distribution rules total 100%.
• Depreciation: test run, fix errors, post, check status; runs cannot be reversed.
• Gain or loss = proceeds minus net book value, per area.
• Hand-calculate expected values for every area before testing.
• Reconcile asset balances with the G/L per ledger.