What determines whether system will do automatic depreciation adjustment or not?
My understanding:
The system calculates an adjustment in the current period whenever the accumulated depreciation is not according to depreciation rate and date in service:
Example:
Asset cost = 100,000
Dep rate = 20% pa SLM
date in service: 1 Jan-2015
Current period: June-2015
If this asset is added in Jun-15, its accumulated depreciation should be 50,000. If the accumulated depreciation entered at time of addition is anything other than 50,000 then system will do a depreciation adjustment when depreciation for June is run.
Similarly if the depreciation rate or date in service is changed during its life; system will enter an adjustment when depreciation is run in the current period.