Acquisition to depreciation

Follow an asset from its purchase evidence to reviewed depreciation and confirmed accounting entries.

5 stages · 1 approval

Roles and responsibilities

Controller / CFO Fixed Asset Accountant System 1 Master data setup AssetCategories 2 Assetcapitalization FixedAssets 3 Asset book setup AssetBooks financial · system 4 Depreciationcalculation DepreciationRuns 5 Depreciationapproval DepreciationRuns
  1. Step 1Master data setup
    Assets Pending CapitalizationDraft
    Asset TagDescriptionCategoryAcquisition Date
  2. Step 2Asset capitalization
    Assets Pending CapitalizationDraft
    Asset TagDescriptionCategoryAcquisition Date
  3. Step 3Asset book setup
    Open Depreciation RunsDraft
    Run NumberBookPeriod StartPeriod End
    Tax-Federal
  4. Step 4Depreciation calculation
    Open Depreciation RunsDraft
    Run NumberBookPeriod StartPeriod End
    Tax-Federal
  5. Step 5Depreciation approval
    Pending Depreciation ApprovalsReviewed
    Run NumberBookPeriodTotal Amount
    Tax-Federal
Red diamonds require approval.Rows show responsibility for each step.Dashed lines are records the system creates.

Process steps

Follow the process from start to finish. Select a step to see who acts and what changes.

Master data setup

Configure entity-scoped categories, financial account mappings, custodians and reviewed effective tax rules. Retain policy versions for in-service assets.

Responsible
Controller / CFO
Records
AssetCategoriesEmployeesTaxRuleSets
Effect
Configure entity-scoped categories, financial account mappings, custodians and reviewed effective tax rules

Asset capitalization

Reconcile capex source evidence with the individual asset, cost, in-service date and assignment. Duplicate source events return the existing candidate; activating an asset follows the reviewed capitalization policy.

Responsible
Fixed Asset Accountant
Records
FixedAssetsAssetCapitalizations
Effect
Reconcile capex source evidence with the individual asset, cost, in-service date and assignment

Asset book setup

Create financial and tax books with distinct basis, method, convention and rule version. Designate the financial posting book and preserve calculated forecasts separately from posted history.

Responsible
Fixed Asset Accountant
Records
AssetBooksBookSchedules
Effect
Create financial and tax books with distinct basis, method, convention and rule version

Depreciation calculation

Calculate one candidate per entity, book and period using versioned inputs. Do not update posted accumulated depreciation from draft calculations. Repeated requests reuse the same run identity.

Responsible
Fixed Asset Accountant
Records
DepreciationRunsDepreciationRunItemsBookSchedules
Effect
Calculate one candidate per entity, book and period using versioned inputs
Approval required

Depreciation approval

Independently approve the reviewed financial-book run. Tax Accountant independently approves tax-book work. Send a balanced journal proposal to accounting and mark financial completion only after its exact posted acknowledgment.

Responsible
Controller / CFO
Records
DepreciationRunsDepreciationRunItems
Effect
Independently approve the reviewed financial-book run
Approvals and controls

1 approval required in this process

  • Depreciation approval Controller / CFO signs · closes the processDepreciationRuns, DepreciationRunItems
  • Link each asset to its purchase evidenceReviewed in-service date without duplicating an imported acquisition.
  • Keep financial and tax books separateIncluding their basis, methods and effective rules.
  • Leave draft depreciation out of posted balancesWait for the accounting acknowledgment before recording financial completion.

Records and postings

StageRecordsEffect
1 Master data setup AssetCategoriesEmployeesTaxRuleSets Configure entity-scoped categories, financial account mappings, custodians and reviewed effective tax rules
2 Asset capitalization FixedAssetsAssetCapitalizations Reconcile capex source evidence with the individual asset, cost, in-service date and assignment
3 Asset book setup AssetBooksBookSchedules Create financial and tax books with distinct basis, method, convention and rule version
4 Depreciation calculation DepreciationRunsDepreciationRunItemsBookSchedules Calculate one candidate per entity, book and period using versioned inputs
5 Depreciation approval DepreciationRunsDepreciationRunItems Independently approve the reviewed financial-book run
Data model →

Process reports

All reports

Depreciation Forecast

Forward-looking depreciation per Book by month for the next 60 months, computed from the current BookSchedules projection of every active AssetBook. Drills by Category and CostCenter. The CFO's planning input into the operating budget.

Asset Roll-Forward

Per period: opening cost, additions (new capitalizations), retirements, disposals, transfers, ending cost; opening accumulated depreciation, period depreciation, accumulated retired, ending accumulated; opening NBV, ending NBV. Drills by AssetCategory × Department × Location × individual FixedAsset. The Controller's monthly close artifact and the auditor's tie-out to the GL control account.

Disposals & Gain/Loss

Per period: every AssetDisposal with DisposalMethod, ProceedsAmount, NetBookValueAtDisposal, GainLoss, JournalEntryRef. Sum of GainLoss per category; flags loss outliers above a configurable threshold for additional Controller review.

Asset Aging by Category

Per Category: count and original cost of assets by age bucket (0–1y, 1–3y, 3–5y, 5–10y, 10y+) and by NBV remaining bucket (≥75% NBV, 50–75%, 25–50%, 0–25%, fully depreciated). Surfaces aging fleet candidates for replacement planning.

Maintenance Cost per Asset

TTM maintenance spend per FixedAsset rolled up by Category and Manufacturer. Flags assets where TTM maintenance exceeds a configurable percentage of NBV — economic-life signal for retirement or replacement.

Run by an agent

Agent support

Proto cannot supply a missing business approval, invent external payment or posting outcomes, or weaken the server permissions. Reviewed source records and configured integrations determine the available actions. Retain the result of each actual operation and investigate unsupported requirements before enabling automatic execution.

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# Example after configuration $ curl -fsSL https://www.erp.ai/skill.md | paste into your agent › acquisition to depreciation · master data setup on AssetCategories, Employees, TaxRuleSets ✓ Configure entity-scoped categories, financial account mappings, custodians and reviewed effective tax rules. › acquisition to depreciation · asset capitalization on FixedAssets, AssetCapitalizations ✓ Reconcile capex source evidence with the individual asset, cost, in-service date and assignment. › acquisition to depreciation · asset book setup on AssetBooks, BookSchedules ✓ Create financial and tax books with distinct basis, method, convention and rule version. › acquisition to depreciation · depreciation calculation on DepreciationRuns, DepreciationRunItems, BookSchedules ✓ Calculate one candidate per entity, book and period using versioned inputs. › acquisition to depreciation · depreciation approval on DepreciationRuns, DepreciationRunItems ⏸ approval · waiting for the controller / cfo

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