What should you do if the depreciation start date is earlier than the fixed asset start date?

When the depreciation start date is earlier than the fixed asset start date, entering the amount of accumulated depreciation is the correct approach because it allows for the financial records to accurately reflect the wear and tear on the asset up to the fixed asset start date. Accumulated depreciation represents the total depreciation expense that has been recognized on the asset since it was acquired, even if the asset was not officially recorded in the system until a later date.

By entering the accumulated depreciation, you're ensuring that the financial statements show the correct net book value of the asset. This value is essential for proper accounting treatment and financial reporting. By doing so, you acknowledge the depreciation that has occurred prior to the fixed asset formally being entered into the system.

Other options, such as not entering any values or adjusting the fixed asset start date, could lead to inaccuracies in financial reporting, misrepresenting the asset's value and potentially creating compliance issues. Entering the total asset value instead would ignore the fact that part of the asset’s value has already been consumed through depreciation, which would not reflect its true economic reality.