The Amortization function provides the facility to generate general ledger provision for amortization on the basis of the item on a monthly basis. Multiple amortization formulas, in matrix form, can be defined based on ‘Title grouping’ levels. Multiple formula sets can be defined to be used for different purposes, for example printing plates. The calculation process involves determining the current amortization based on the age of the products and generating journals for the difference between that and the previously adjusted amortization value.
To switch amortization on, you would have to nominate the appropriate cost type as being used to amortize. Once the appropriate date is reached the system (BPO005) would trigger the amortization process to commence (write a record into the Amortization balance file).
CR WIP
DR Amortization.
However if you did not want a product to amortize, you would choose the ‘I’ Immediate option. The calculation of the provision for amortization is defined independently of the definition for General Ledger accounts for the journals, so ongoing maintenance is simplified. The amortization matrix can be setup for each Title Level, over a selected period where the item is to be amortized and the general ledger code to which this amortization cost should be charged.
The monthly amortization process calculates and writes the provisions for amortization.
CR Amortization
DR Expense.
The process produces general ledger journals that are interfaced to the General Ledger Module in the GL Interface file.
Maintenance
Generate cycle
Generate GL journals
Amortization reports
