The depreciation rate initially assigned to the fixed asset can only be changed within the same financial year if you want it to apply from the beginning. If the asset was acquired in a previous financial year (or earlier) and annual reports have already been submitted, changing the original rate would also require amending those reports. Therefore, any changes to the depreciation rate must be added under the “Alter asset depreciation plan” panel. This ensures that previous periods remain unaffected.

Example
The machine was initially estimated to have a useful life of about 7 years, with a depreciation rate of 15%.

Some time later, management reassesses the estimate and decides that the machine can be used for a longer period, setting a new depreciation rate of 10%.
The first depreciation entry with the new rate must be in January 2025. The first depreciation entry was posted on 30.09.2023, so the system automatically generates monthly depreciation entries on the 30th of each month.
On the “Alter asset depreciation plan” panel, click  “Add new change to asset”. In the window that opens, set the change date to 30.12.2024, i.e. the date of the last transaction made using the old depreciation rate.

1. Start date of the valid from
2. New depreciation rate per year (%)
3. Save asset change

After saving the change, a prompt saying “Make new depreciation transactions!” appears. Be sure to click the “Generate” button so that the system can recalculate the transactions correctly.
When reviewing the amounts in the depreciation history panel, you can see that transaction amount changes starting from the entry dated 30.01.2025.

In summary:

• The depreciation rate in the general details of the fixed asset can only be changed during the year of acquisition, i.e. until the annual report for that financial year has been submitted.
• The start date of the new depreciation rate must match the date of the last transaction under the previous depreciation rate.

Improvement costs are added to the acquisition cost of fixed assets only if they meet the definition and recognition criteria of fixed assets, including the probable generation of future economic benefits.

Regular maintenance and repair costs are recognized as expenses in the period in which they are incurred.

ASBG 5 Improvements, repairs, and maintenance (points 31, 32)

Example

1. A major engine overhaul is performed on a work machine that is recorded as a fixed asset, extending its useful life. The repair invoice is entered as a purchase invoice. On the invoice line, select the same fixed asset account as on the asset card of the asset being improved. The VAT type should also be set as “Acquisition of fixed asset”.

2. When saving the purchase invoice, the system will offer to create a new fixed asset card. Be sure to select “No”.

3. Go to the fixed asset card, and in the “Alter asset depreciation plan” panel, click “Add new change to asset.” In the window that opens, start typing the content of the improvement invoice line or the purchase invoice number in the “Source document” field. If the invoice line is found, click it to select.

4. After selecting the invoice line, the change date is automatically set to the purchase invoice date, and the new acquisition cost is set to the original acquisition cost plus the improvement amount.

1. Valid from –  taken from the purchase invoice and cannot be changed.
2. New acquisition cost – original acquisition cost + the improvement invoice amount, cannot be changed.
3. Save asset change.

5. After saving the change, a prompt saying “Make new depreciation transaction!” appears. Be sure to click the “Generate” button so the system can correctly recalculate the transactions.
By default, the first depreciation transaction date is suggested as the start date for recalculation. This can be left as is, because recalculation does not affect the amounts of previously posted transactions. If you wish, you can change the “new transactions from” date to the date of the last depreciation transaction with the old amount.

6. In this example, the change became effective on 15.05.2025, so the first depreciation transaction with the new amount must be dated 30.05.2025. You can verify the depreciation amount and residual value in the Depreciation history panel.

1. Depreciation transaction based on the original acquisition cost.
2. First depreciation transaction with the updated amount. As the change took effect mid-month, the new acquisition cost was not applied for the entire month.
3. Transaction fully calculated based on the new acquisition cost.

In summary:

1. Enter the purchase invoice related to the improvement, and ensure the correct fixed asset account is selected.
2. Do not create a new fixed asset card.
3. Add a change on the fixed asset card, and make sure to link it to the source document.
4. Recalculate depreciation transactions, even if the change is made within the current month and previous transactions do not need to be updated.
5. Check the depreciation history panel to verify that the residual value and depreciation transaction amount have been updated (after the first transaction with the new amount has been generated).