Depreciation run error

I have created a new asset with a capitalisation date 01/01/2007 and purchased on the same date. The fiscal year is Jan to Dec. Now I am running the depreciation run and it is displaying the period as as 2006/004/01. And it is giving an error log : <b>(1) You can only post in new year after closing the previous year. (2) You want to post in a new fiscal year. However, a posting must have been made in the last period in the previous fiscal year before you can do this.Post to the last period in the previous year first.</b> What does it mean? What should I do now?