A depreciation year is an accounting cycle of any length, beginning on any day, and divided into periods. You use depreciation years in a formula to calculate depreciation expense over the useful life of an asset. You should define past and present depreciation years during the initial Fixed Assets setup process, but you can also add unlimited depreciation years later, as long as you assign each depreciation year a unique name or ID. When you define a depreciation year, you can divide it into a maximum of 13 periods you use to track depreciation. When you post a fixed asset transaction, the post date determines the depreciation year in which the entry appears. All transactions must fall within a defined depreciation year.
By defining future depreciation years, you can create depreciation transactions for future periods. Using past depreciation years, you can enter historic information to include in reports that compare one year against another.
You cannot delete depreciation years after you add transactions.