Introduction: For depreciating fixed assets in Active Ledger that have an Additions History, it’s important to recognize that the "Date to Commence Depreciation" is used for depreciation calculations, not the 'Acquisition date' of the asset.
Key Details:
Acquisition Date: The date when an asset addition is recorded (e.g., 15 Feb 2024 for a vehicle addition).
Date to Commence Depreciation: The start date for calculating depreciation (e.g., 17 Jul 2023). This date is crucial as it determines when the depreciation expense begins, which may differ from the acquisition date.
Why It Matters: Using the "Date to Commence Depreciation" aligns depreciation with fiscal policies and accounting standards, ensuring accurate financial reporting.