If depreciation is expensed at the end of the fiscal year, no additional transactions are required, as the prior system will have no year to date depreciation expense.
When depreciation is expensed monthly in the prior system, complete a depreciation run with a posting date up to the day before go-live. This will credit accumulated depreciation and debit the depreciation expense account for the full year to date depreciation. Depending on the depreciation calculations between the prior system and SAP, the expense may differ slightly. It is recommended to make a manual journal entry to account for the differences posted for the day before go-live to account for the variance. Make this a reversing journal entry with a reversal date of go-live.
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