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Creating Monthly Depreciation Expense Entries in X3

The following instructions illustrate how to create the monthly depreciation


expense journal entries in X3

Go to Fixed Assets/ Financial Charge

Companies: the user can leave the All Companies box ticked if they wish to
generate the depreciation entries for all companies
Sites: the user can leave the All Sites box ticked if they wish to generate the
depreciation entries for all sites
First/Last Fixed Asset: if the user desires to generate the depreciation entry
only for a certain range of assets the asset range can be defined here
First/Last Category: these fields can be set if it is desired to generate the
deprecation entry only for certain fixed asset categories
Generation Type:
o Actual: generates the journal entry
o Inactive Simulation: generates a simulation journal entry that will be
deleted when the process is run in Actual mode. The simulation
can be run to review the journal posting before it is generated
Distribution Status: should always be set to Temporary
Depreciation Date: this will represent the GL posting date of the entry
Prorata Calculation: typically set to Monthly, but should be in agreement with
the Prorata status setup on the fixed assets
Document Type: set to ODG
Journal: set to ODG

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Screenshot of the Financial Charge menu

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When the user clicks on OK the following log file will be generated indicating
the ID number of the journal entry that was created.

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Go to Financials/ Journals/ Journal Entry

The user can view the depreciation entry sending charges to the applicable
depreciation expense and accumulated depreciation accounts.

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Note the Financial Charge program will ignore fixed assets that have a Status
set to Pending.
If the status of an asset is set to Definitive and has a depreciation start date
in a period that has already has had a depreciation entry generated it will be
necessary to rerun the Financial Charge program for that period. X3 will not
generated additional depreciation entries for assets that have already been
expensed during the period.