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For example, suppose you increase the original cost of a depreciating asset by adding an additional acquisition. A computer with an original cost of $1000 is being depreciated over a period of 8 years. After 4 years, $400 of additional memory is added via an additional acquisition updating the original cost to $1400.  For the first 4 years, the computer depreciated $125/year for a total of $500 (one half of its useful life). But since its value has just been increased by $400, the current book value is $900, which will be depreciated over the remaining 4 years.  After the upgrade, the next 4 years, it will depreciate at $225/year until it's fully depreciated.   However, if 'Depreciate' were run on this item after the additional acquisition, the life-to-date depreciation would be re-calculated over the entire life of the item using the new original cost ($1400/8 years) depreciating at $175/year.  The historical 'true' depreciation will no longer exist when using 'depreciate' to re-calculate LTD depreciation.   

Recalculate

The "Recalculate" button on the grid will allow the items original cost to be recalculated to equal the sum of the acquisition amounts.  This feature is restricted to Admin permission only. If an item's original cost does not equal the sum of the acquisition amounts, please reach out to your ITC for assistance in resolving the issue.

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Item Depreciation Adjustments

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