Use this subtask to view information about depreciation and postings to the General Ledger. Data displays in this screen (if depreciation is based on years) once depreciation for a record has begun. For existing property records, you will need to add historical depreciation data in this subtask.
For established Asset Master records only:
You can enter, edit, and view the data from this screen in a table window format by accessing the Maintain Asset G/L Book Info screen (directly from the Asset Master Records menu). An alternate access route to Asset Master subtask data gives you more flexibility in setting up screen security options for users with different access needs.
If screen rights are set up so the user can access the Maintain Asset Master Info screen from the Asset Master Records menu option, this screen and ALL its subtasks are automatically accessible to the user.
If screen rights are NOT set up for the user to access the Maintain Asset Master Info screen, the system administrator can alternately grant or deny access rights using the direct menu option on a screen-by-screen basis, which correlates directly with the data contained in each subtask. In this manner, each user can access only the data from permissible subtasks in an Asset Master record.
Although the data displays in columnar form in the table window screen, data entry functionality and data rules for each column are identical to their corresponding fields in the Maintain Asset Master Info screen, regardless of which entry screen methodology you establish for each user.
When you select the G/L Book pushbutton in the main screen, there are three different versions of the subtask that can display.
If you have indicated in the Maintain Asset Master Info screen that the record is depreciable (by selecting the Depreciable radio button in the Depr Status group box) and that depreciation is based on Years (in the Depr Based On group box), this screen, the G/L Book Info (Years) subtask, displays.
If you have indicated in the Maintain Asset Master Info screen that the record is depreciable (by selecting the Depreciable radio button in the Depr Status group box) and that depreciation is based on Units of Usage (in the Depr Based On group box), the G/L Book Info (Units) subtask displays.
If you have indicated in the Maintain Asset Master Info screen that the record is depreciable (by selecting the Depreciable radio button in the Depr Status group box) and that depreciation is based on Lease Pds (in the Depr Based On group box), the G/L Book Info (Leases) subtask displays.
Although you can use up to 10 books in Costpoint Fixed Assets, Book 1 always carries the name "G/L Book," and is automatically designated by the system as the Accounting Book. The G/L Book is the ONLY book that interfaces with the General Ledger by means of depreciation and disposal posting entries. This subtask is the G/L Book screen for those assets that use depreciation that is based on years.
There are both system-required and optional fields in this screen.
You should enter data in this screen before you calculate depreciation. Although you can change information in this screen at any time, use caution in the timing of these edits, which can impact the calculation of depreciation as well as the types of records included in system reports.
You may find that one or more fields in this screen are already populated with default data from a template. The source of this data is determined by the template/revision number that displays in the Template No/Rev No fields in the main screen. Data may have been copied from a default template designated in the Default Template for Asset Master group box in the Fixed Assets Settings screen or from a specified template other than the default. Initial data that displays as a result of using a template can be edited as desired.
In this group box, you can view the asset number and item number of the record that was selected in the main screen.
This non-editable field displays the asset number from the main screen.
This non-editable field displays the item number from the main screen.
In this group box, you can activate automatic system depreciation calculations for this record.
The system default for this checkbox is checked. You should accept the system default to include this record automatically in system calculations of depreciation. If you select this checkbox, the system will automatically compute depreciation each period for eligible assets and will display the results in the Current Pd Depreciation field in this screen. You can always overwrite the automatic system calculation of depreciation, as desired. If this checkbox is selected, the system will also re-set the Current Pd Depreciation field back to zero during the Fixed Assets period close process.
Do not select this checkbox if you want to disable the automatic system calculation of depreciation. In this circumstance, you will need to manually enter the amount of depreciation in the Current Pd Depreciation field to post depreciation for this record.
In general, if you need to make a one-time adjustment to current depreciation expense, you should manually override the system calculation in the Current Pd Depreciation field rather than change the default for this checkbox. If, however, you want to post a depreciation entry to the General Ledger as a recurring override to system calculations, uncheck this checkbox and enter the override amount in the Current Pd Depreciation field.
You may find that this field is already populated with default data from a template. The source of this data is determined by the template/revision number that displays in the Template No/Rev No fields in the main screen. Data may have been copied from a default template designated in the Default Template for Asset Master group box in the Fixed Assets Settings screen.
For an existing asset record, this field may display the latest selection you made when you originally added or edited the asset record or the selection from the latest Asset Template specified in the Template No/Rev No fields, if a template is used. It may not always be easy to identify the source of the Asset Master data because template functionality in this screen and in the Edit Autocreation Transactions screen allows you to overwrite ALL existing data with template data or to populate only BLANK fields with template data.
Because Asset Master data may have originated from Costpoint Purchasing, Receiving, and/or Accounts Payable using the autocreation function, it is very important to use the template functionality knowledgeably and with caution. Although you should take care to preserve the integrity of the data with respect to its source, you can always edit data in the Asset Master record fields, as needed, regardless of the mode of data entry (manually, using autocreation, and/or via the template mechanism).
In this group box, you can select the appropriate depreciation method for use with this record and indicate the useful life of the asset.
For a new asset record, enter up to six alphanumeric characters in this system-required field to specify a depreciation method code for this record. You can also use the drop-down box to select the desired code. Valid depreciation method codes are set up during initialization in the Depr Methods - Basic Setup screen.
You may find that this field is already populated with default data from a template. The source of this data is determined by the template/revision number that displays in the Template No/Rev No fields in the main screen. Data may have been copied from a default template designated in the Default Template for Asset Master group box in the Fixed Assets Settings screen. For an existing asset record, this field may display the latest selection you made when you originally added or edited the asset record or the selection from the latest Asset Template specified in the Template No/Rev No fields, if a template is used. It may not always be easy to identify the source of the Asset Master data because template functionality in this screen and in the Edit Autocreation Transactions screen allows you to overwrite ALL existing data with template data or to populate only BLANK fields with template data.
Because Asset Master data may have originated from Costpoint Purchasing, Receiving, and/or Accounts Payable using the autocreation function, it is very important to use the template functionality knowledgeably and with caution. Although you should take care to preserve the integrity of the data with respect to its source, you can always edit data in the Asset Master record fields, as needed, regardless of the mode of data entry (manually, using autocreation, and/or via the template mechanism). Because depreciation calculations use the depreciation method code from this field, use caution if you change the depreciation method code for property records once they have begun depreciating in the system.
If you plan to use the Verify/Update Depr Computation Data utility to verify (and optionally update) data in the Depr Start Date, Curr Depr Yr, and Days/Pds Remaining fields for your historical assets, you must also set up FY/Pd data in Costpoint Fixed Assets for the historical fiscal years that correspond to the Depr Start Date field(s) of the G/L Book Info subtasks (and Other Books Info subtask, as applicable). If no corresponding FY/Pd data is found in Costpoint Fixed Assets for the fiscal years indicated in the Depr Start Date field(s) of the G/L Book Info subtasks (and Other Books Info subtask, as applicable), blanks will display in the Current Pd Depreciation field(s) of the G/L Book Info and Other Books Info subtasks after depreciation is computed for new records.
In addition, as a result of this condition, blanks will also display in the report produced by running the Verify/Update Depr Computation Data utility (in the Curr Depr Yr and Days/Pds Remaining fields) for any record for which no corresponding FY/Pd data is found in the Costpoint Fixed Assets for the fiscal year indicated in the Depr Start Date field(s) of the G/L Book Info subtasks (and Other Books Info subtask, as applicable).
For a new asset record, enter up to four numeric characters in this optional field to indicate the useful life for this record.
You may find that this field is already populated with default data from a template. The source of this data is determined by the template/revision number that displays in the Template No/Rev No fields in the main screen. Data may have been copied from a default template designated in the Default Template for Asset Master group box in the Fixed Assets Settings screen. For an existing asset record, this field may display the latest selection you made when you originally added or edited the asset record or the selection from the latest Asset Template specified in the Template No/Rev No fields, if a template is used. It may not always be easy to identify the source of the Asset Master data because template functionality in this screen and in the Edit Autocreation Transactions screen allows you to overwrite ALL existing data with template data or to populate only BLANK fields with template data.
Because Asset Master data may have originated from Costpoint Purchasing, Receiving, and/or Accounts Payable using the autocreation function, it is very important to use the template functionality knowledgeably and with caution. Although you should take care to preserve the integrity of the data with respect to its source, you can always edit data in the Asset Master record fields, as needed, regardless of the mode of data entry (manually, using autocreation, and/or via the template mechanism).
The value in this field is for data purposes only and is not used in system calculations. When the system calculates depreciation, the depreciation year and percentage for that year are derived from the depreciation method assigned to the record in the previous field. For example, if you enter a useful life of five years in this field but your depreciation method uses only three years, the system will not use the value in this field for calculations, but will instead use percentages for three years only, as specified by the depreciation method.
In this group box, you can enter a depreciation start date (required before depreciation calculations can take place) and an in-service date (optional).
The relationship between this field and the values in the Curr Depr Yr and Days/Pds Remaining fields is critical to the accurate calculation of depreciation for new records.
For a new asset record, this field is blank. There is no corresponding Asset Template field.
Enter the depreciation start date for this record in date format in this field. Even though this field is not system-required, it is the most important date field for depreciable assets because the system uses this field in the computation of depreciation. Depreciation calculations will not take place if this field is blank, or if this date is later than the end of the current accounting period. (The Costpoint Fixed Assets "current" accounting period is specified in the Posting Settings screen.)
If you anticipate a depreciation start date delay due to installation or calibration requirements, for example, you can enter a future date in this field. In this circumstance, depreciation calculations will not begin until the future date coincides with your current accounting period. The date in this field must be on or before the end of the current accounting period for depreciation calculations to take place.
For an existing asset record, you can edit data that displays in this field, as desired. Because system calculations use this date to determine if depreciation computations should take place for each record, use extreme caution if you change the depreciation start date for property records once they have begun depreciating in the system.
You can use the Verify/Update Depr Computation Data utility to assist you in verifying the relationship of the Depr Start Date field to the Curr Depr Yr and Days/Pds Remaining fields.
Using the value in the Depr Start Date field, the system prints a report by asset/item number, by book, that includes a side-by-side comparison of both the current values displayed in the Asset Master record AND the values that the system would automatically have computed for the Curr Depr Yr and Days/Pds Remaining fields.
Although you can print this report for all selected records, you can also print the report for exceptions only, by which discrepancies may be easier to identify. After the report has printed, you can activate the option in this utility that applies the system-computed values to your asset records. This process updates the existing data in the Curr Depr Yr and Days/Pds Remaining fields by replacing your data and writing the system-computed values to these fields.
You should run this utility to verify, and optionally update, your data after you initialize your historical records and reconcile the detail Asset Account and Accumulated Depreciation Account values with your General Ledger and before you compute depreciation for the first time.
After initialization, you may want to run this utility on a regular basis each period as part of your company's standard procedures, to confirm that your period additions have been initialized correctly.
For additional information about this feature, please refer to the documentation on the Verify/Update Depr Computation Data utility.
During initialization, to ensure consistency of data, you may want to develop some internal rules on the use of this field.
When entering data for new records or for historical records during the initialization process, there are no system restrictions regarding the appropriateness and/or accuracy of the start date. Because of the important relationship between the start date and the data in the Curr Depr Yr and Days/Pds Remaining fields, however, in most cases you should enter the date at which depreciation originally began for this record.
There are two ways to populate the Curr Depr Yr and Days/Pds Remaining fields for new records:
You can manually enter this data at the same time you enter data for other Asset Master fields. For this method, you need to be very careful that your entries are correct and "in sync" with the Depr Start Date field.
You can leave these fields blank when you initialize the Asset Master record. When you compute depreciation for the first time, the system will automatically compute and insert the correct values for these fields, based on the Depr Start Date.
Because manually entered data in the Curr Depr Yr and Days/Pds Remaining fields is especially prone to user error and misinterpretation, you can use the Verify/Update Depr Computation Data screen to assist you in verifying the relationship of these two fields with the Depr Start Date field. The Verify/Update Depr Computation Data screen can be accessed from the Utilities menu of Costpoint Fixed Assets. It can be run for any number of asset/item numbers.
The utility produces a report, based on the depreciation start date, which shows a side-by-side comparison of both the current values displayed in the Asset Master record and the system-computed values for the Curr Depr Yr and Days/Pds Remaining fields. You can print the report for all selected records or for exceptions only, which makes discrepancies easier to identify.
After the report has printed, you can activate the option in this utility that applies the system-computed values to your asset records. This process updates the existing data in the Curr Depr Yr and Days/Pds Remaining fields by replacing the existing data with the system-computed values. If you do not apply the system-computed values to your data, you may need to manually adjust some values in the Curr Depr Yr and Days/Pds Remaining fields (or, in some cases, the Depr Start Date field) to ensure the accuracy of depreciation calculations.
Because the Update portion of this utility will overwrite your existing data with system-generated data, you should always carefully review and agree with the reported results on a record-by-record basis before performing the Update process. The Update process is similar to posting routines in that the report must first be printed before you can proceed with the Update process. Never run the Update process routinely unless you agree with the system field changes that will take place in each Asset Master record.
For additional information about this feature, please refer to the documentation for the Verify/Update Depr Computation Data utility.
For a new asset record, this field is blank. There is no corresponding Asset Template field. Enter the in-service date for this record in date format in this optional field.
The value in this field is for data purposes only and is not used in system calculations. (When the system calculates depreciation, the system checks only the date from the Depr Start Date field.) The date in this field can be an historical, current, or future date.
For an existing asset record, you can edit the value that displays in this field, as desired.
In this group box, you can view, select, or edit the current depreciation year and days/periods remaining for this record. The data in these fields is used in the system calculation of depreciation.
This field, along with the Days/Pds Remaining and Depr Start Date fields, plays an integral role in the system calculation of depreciation. The value in this field signifies which depreciation year of the asset's useful life is current. As a result of this data, the system can use the appropriate percentage for the current year of life from the depreciation method linked with this record. (Years of useful life and percentages for each year are set up in the Depr Methods - Basic Setup screen.)
For a new asset record, this field is blank. There is no corresponding Asset Template field. You can leave this field blank, if desired because the system will automatically insert "1" in this field for a new blank record the first time that depreciation is calculated for this asset. Alternately, you can manually enter the depreciation year (which should be "1" for a new record), if desired. If you enter a value in this field, however, you must also enter a value in the Days/Pds Remaining field, or you will not be able to save the asset record.
This field must be blank for the system to populate it with a "1" the first time that depreciation is calculated for this record. If you have entered any number in this field, the system will not automatically replace your entry during depreciation calculations. Although this field is not system-required, system calculations cannot take place if you have overwritten the system-populated value in this field with blanks. The reason for this is that the system cannot find the appropriate percentage to use from the Depr Methods - Basic Setup screen if the current depreciation year is not specified.
During the initialization of your historical records, you will need to enter the correct current depreciation year for each asset. If, for example, you have an asset for which you have defined a depreciation method with a useful life of five years (the Depr Methods - Basic Setup screen), you should enter the current year of that life (for example, "1," "2," "3," "4," or "5"). In this way, the proper depreciation percentage for the current depreciation year can be used during system calculations.
For both new and historical records, once this field is initialized, the system automatically increases the value in this field when required during the appropriate Fixed Assets period close process. The current year automatically increments during the closing process if there are additional years of useful life remaining for the record, and the Days/Pds Remaining field displays a "1" (for assets using period-based depreciation) if the number of days remaining is less than or equal to the number of days in the Fixed Assets period being closed (for assets using a Date of Purchase basis with depreciation calculated based on the number of days owned). At the same time, the value in the Days/Pds Remaining field will also change appropriately and automatically.
For an existing asset record, you can edit data that displays in this field, if needed. Because system calculations use this data to determine if depreciation computations should take place (and how they take place) for each record, use extreme caution if you change the current depreciation year for property records once they have begun depreciating in the system.
Because manually entered data in the Curr Depr Yr and Days/Pds Remaining fields is especially prone to user error and misinterpretation, you can use the Verify/Update Depr Computation Data screen to assist you in verifying the relationship of these two fields with the Depr Start Date field. The Verify/Update Depr Computation Data screen can be accessed from the utilities menu of Costpoint Fixed Assets. You can run it for one, a range of, or all asset/item numbers.
The utility produces a report, based on the depreciation start date, which shows a side-by-side comparison of both the current values displayed in the Asset Master record and the system-computed values for the Curr Depr Yr and Days/Pds Remaining fields. You can print the report for all selected records or for exceptions only, which makes discrepancies easier to identify.
After the report has printed, you can activate the option in this utility that applies the system-computed values to your asset records. This process updates the existing data in the Curr Depr Yr and Days/Pds Remaining fields by replacing the existing data with the system-computed values. If you do not apply the system-computed values to your data, you may need to manually adjust some values in the Curr Depr Yr and Days/Pds Remaining fields (or, in some cases, the Depr Start Date field) to ensure the accuracy of depreciation calculations.
Because the Update portion of this utility will overwrite your existing data with system-generated data, you should always carefully review and agree with the reported results on a record-by-record basis before performing the Update process. The Update process is similar to posting routines in that the report must first be printed before you can proceed with the Update process. Never run the Update process as a matter of routine unless you agree with the system field changes that will take place in each Asset Master record.
This field, along with the Curr Depr Yr and Start Date fields, plays an integral role in the system calculation of depreciation. The value in this field indicates the number of days or periods remaining in the current depreciation year of the asset's useful life. (Set up years of useful life and percentages for each year in the Depr Methods - Basic Setup screen.)
For a new asset record, this field is blank. There is no corresponding Asset Template field. You can leave this field blank, if desired because the system will automatically place the correct value in this field for a new blank record the first time that depreciation is calculated for this asset. Alternately, you can manually enter the days or periods remaining in this field. If you enter a value in this field, however, you must also enter a value in the Curr Depr Yr field, or you will not be able to save the asset record.
The value in this field will depend on the Date of Purchase (DP) or Fiscal Year (FY) basis assigned to the depreciation method for this asset.
¨ If you have linked a DP basis for depreciation method with this record, the value in this field should reflect the number of days or periods remaining in the current purchase year, depending on the option you selected in the System-Wide Configuration for DP Basis Depr Methods group box in the Fixed Assets Settings screen.
¨ If you have linked a FY basis for depreciation method with this record, the value in this field should reflect the number of periods remaining in the current fiscal year. The number of periods remaining cannot be greater than 18.
This field must be blank for the system to populate it the first time that depreciation is calculated for this record. If you have entered any number in this field, the system will not replace your entry during depreciation calculations. Although this field is not system-required, system calculations cannot take place if you have overwritten the system-populated value in this field with blanks. The happens because the system cannot depreciate correctly for the current period if the Days/Pds Remaining field is not specified.
During the initialization of your historical records, you will need to enter the correct periods remaining for each asset.
For both new and historical records, once this field is initialized, the system automatically changes this value (as required) during the Costpoint Fixed Assets period close process. The current year automatically increments during the closing process if there are additional years of useful life remaining for the record, and the Days/Pds Remaining field displays a "1" (for assets using period-based depreciation) if the number of days remaining is less than or equal to the number of days in the Fixed Assets period being closed (for assets using a Date of Purchase basis with depreciation calculated based on the number of days owned). At the same time, when the value in the current year increases, the value in the Days/Pds Remaining field will also change automatically and appropriately for the basis used (DP or FY).
For an existing asset record, you can edit data that displays in this field, if needed. Because system calculations use this data to determine whether depreciation computations should take place (and how they take place) for each record, use extreme caution if you change this field for property records once they have begun depreciating in the system.
In this group box, you can enter, edit, or view the amount of depreciation expense taken purchase year-to-date for the current purchase year. The data in this field is used by the system during depreciation calculations for depreciation methods that use the Date of Purchase basis of depreciation.
This field, along with the Curr Depr Yr and the Pds Remaining fields, plays an integral role in the system calculation of depreciation for methods using the Date of Purchase basis.
This field is active only for depreciation methods that use the Date of Purchase basis. You must select a Date of Purchase (DP) or Fiscal Year (FY) basis in the Depr Methods - Basic Setup screen when you set up each depreciation method.
If the method from the Depr Method Code field in this screen uses a DP basis, this field is active.
If the method from the Depr Method Code field in this screen uses a FY basis, this field is not active.
For a new asset record, this field is blank. There is no corresponding Asset Template field. You should leave this field blank for a new record, because the system will automatically increment (or possibly decrement) the value in this field by the amount of depreciation posted when the current Fixed Assets period is closed.
The value in this field will be different from the value in the FYTD Depreciation field except when the date of purchase coincides with the start of your fiscal year. The Amt Taken Purchase YTD field displays purchase year data, while the FYTD Depreciation field displays fiscal year data.
During the initialization of your historical records, for records linked to depreciation methods that use the Date of Purchase basis for depreciation, you should enter the correct value in this field for the current purchase year of the asset. Please refer to Special Topic FA-3, "Calculate Depreciation," for additional information on how to correctly initialize this field.
For both new and historical records, the system will automatically change the value in this field by the amount of depreciation posted when the current accounting period is closed.
For an existing asset record, you can edit data that displays in this field, if needed. Because system calculations use this data to determine whether depreciation computations should take place (and how they should take place) for each record, use caution if you change this field for property records once they have begun depreciating in the system.
In this group box, you can specify a salvage percentage or a salvage value for the asset.
For a new asset record, if applicable, enter the salvage value percentage rate to be used in the calculation of salvage and depreciable value in this optional field. You can enter up to three integers and four decimal places.
You may find that this field is already populated with default data from a template. The source of this data is determined by the template/revision number that displays in the Template No/Rev No fields in the main screen. Data may have been copied from a default template designated in the Default Template for Asset Master group box in the Fixed Assets Settings screen. If you enter a salvage value percentage in this field, note that the system automatically computes and displays the equivalent salvage value in the Value field. Alternately, if you do not enter a percentage in this field but instead enter a salvage value amount directly in the Value field, the system will compute and display the equivalent salvage value percentage in this field.
The Percent and Value fields in this group box are reciprocal in that the entry in one field automatically calculates and displays the data in the other. Data from the Value field is subtracted from the Total Cost field and the result is automatically displayed in the Amount to Depreciate field, which in turn affects the amount of depreciation calculated by the system. For example, if an asset's cost is $10,000 and its salvage value is 5%, then the amount to depreciate is $9,500 and the system will not permit depreciation in excess of $9,500 for this asset. Do not enter a value in the Percent or Value fields for salvage unless this is the point at which you want the system to stop depreciation.
For an existing asset record, this field may display the latest selection you made when you originally added or edited the asset record or the selection from the latest Asset Template specified in the Template No/Rev No fields, if a template is used. It may not always be easy to identify the source of the Asset Master data because template functionality in this screen and in the Edit Autocreation Transactions screen allows you to overwrite ALL existing data with template data or to populate only BLANK fields with template data.
Because Asset Master data may have originated from Costpoint Purchasing, Receiving, and/or Accounts Payable using the autocreation function, it is very important to use the template functionality knowledgeably and with caution. Although you should take care to preserve the integrity of the data with respect to its source, you can always edit data in the Asset Master record fields, as needed, regardless of the mode of data entry (manually, using autocreation, and/or via the template mechanism). Because system calculations use this data to determine the manner in which depreciation computations should take place for each record, however, use caution if you change this field for property records once they have begun depreciating in the system.
Refer to the specific examples below, each of which illustrates a different way in which to handle salvage value relative to the computation of depreciation based on years:
This example illustrates the setup for the condition in which salvage value is subtracted before depreciation calculations. This is the most common methodology for computing depreciation when there is salvage value assigned to an asset.
Asset Master Record:
|
Total Cost field = |
$ 10,000 |
|
Salvage Percent field = |
10 % |
|
Salvage Value field = |
$1,000 |
|
Depr Method Code field = |
SL5 |
|
Amount to Depreciate field = |
$ 9,000 |
Depr Method: SL5 (Straight-Line Method over 5 years)
Total % to Depreciate = 100%
Subtract Salvage Value Before Calculation = Checked for depreciation method "SL5."
|
Year |
% |
|
Amt to Depreciate |
|
Annual Depreciation |
|
1 |
20% |
x |
9,000 |
= |
1,800 |
|
2 |
20% |
x |
9,000 |
= |
1,800 |
|
3 |
20% |
x |
9,000 |
= |
1,800 |
|
4 |
20% |
x |
9,000 |
= |
1,800 |
|
5 |
20% |
x |
9,000 |
= |
1,800 |
|
|
|
|
|
|
9,000 |
For this example, the system subtracted the salvage value from the asset's total cost to determine the amount to depreciate (10,000 - 1,000 = 9,000). Note that the residual amount is spread uniformly across all years of useful life ($200 per year for 5 years).
The amount to depreciate is multiplied by the depreciation percentage for the appropriate year of life to determine annual depreciation.
This example illustrates the setup for the condition in which salvage value is not subtracted before depreciation calculations.
Asset Master Record:
|
Total Cost field = |
$ 10,000 |
|
Salvage Percent field = |
10 % |
|
Salvage Value field = |
$1,000 |
|
Depr Method Code field = |
SL5 |
|
Amount to Depreciate field = |
$ 10,000 |
Depr Method: SL5 (Straight-Line Method over 5 years)
Total % to Depreciate = 100%
Subtract Salvage Value Before Calculation = Unchecked for depreciation method "SL5."
|
Year |
% |
|
Amt to Depreciate |
|
Annual Depreciation |
|
1 |
20% |
x |
10,000 |
= |
2,000 |
|
2 |
20% |
x |
10,000 |
= |
2,000 |
|
3 |
20% |
x |
10,000 |
= |
2,000 |
|
4 |
20% |
x |
10,000 |
= |
2,000 |
|
5 |
20% |
x |
10,000 |
= |
2,000 |
|
|
|
|
|
|
10,000 |
For this example, the system ignored the salvage value from the asset's total cost in determining the amount to depreciate (10,000 - 0 = 10,000). The amount to depreciate is multiplied by the depreciation percentage for the appropriate year of life to determine annual depreciation.
This example illustrates the only method available by which to recognize the residual (salvage) amount in the last year of useful life. Note that only 90% of the asset was set up for depreciation when the depreciation method was defined.
Asset Master Record:
|
Total Cost field = |
$ 10,000 |
|
Salvage Percent field = |
10 % |
|
Salvage Value field = |
$1,000 |
|
Depr Method Code field = |
SL5 |
|
Amount to Depreciate field = |
$ 9,000 |
Depr Method: SL5 (Straight-Line Method over 5 years)
Total % to Depreciate = 90%
Subtract Salvage Value Before Calculation = Unchecked for depreciation method "SL5."
|
Year |
% |
|
Amt to Depreciate |
|
Annual Depreciation |
|
1 |
20% |
x |
10,000 |
= |
2,000 |
|
2 |
20% |
x |
10,000 |
= |
2,000 |
|
3 |
20% |
x |
10,000 |
= |
2,000 |
|
4 |
20% |
x |
10,000 |
= |
2,000 |
|
5 |
10% |
x |
10,000 |
= |
1,000 |
|
|
|
|
|
|
9,000 |
Salvage value represents the expectation of value upon the retirement of the asset. It is computed as the salvage value percentage multiplied by the asset's total cost.
For a new asset record, as applicable, enter the salvage value to be used in the calculation of depreciation in this optional field. You can enter up to 12 integers and two decimal places (999,999,999,999.99). Blanks may automatically display in this field because there is no corresponding Asset Template field.
If you enter a salvage value in this field, note that the system automatically computes and displays the equivalent salvage value percentage in the Percent field. Alternately, if you do not enter a value in this field but instead enter a salvage value percentage directly in the Percent field, the system will automatically compute and display the equivalent salvage value in this field.
The Percent and Value fields in this group box are reciprocal in that the entry in one field automatically calculates and displays the data in the other. Salvage Value is subtracted from the value in the Total Cost field, and the result displays in the Amount to Depreciate field, which in turn affects the amount of depreciation calculated by the system. For example, if an asset's cost is $10,000 and its salvage value is 5%, the amount to depreciate is $9,500 and the system will not permit depreciation in excess of $ 9,500 for this asset. Do not enter a value in the Percent or Value fields for salvage unless this is the point at which you want the system to stop depreciation.
For an existing asset record, you can edit the value that displays in this field, as desired. Because system calculations use this data to determine how depreciation computations should take place for each record, use caution if you change this field for property records once they have begun depreciating in the system. For more information on salvage calculations, please refer to the examples of salvage value calculations illustrated in the Salvage Percent section above.
Please refer to the preceding examples of salvage calculations.
In this group box, you can enter, edit, and view the results of depreciation calculations and G/L postings.
This field is not available for user entry in this screen. This field automatically displays the cost from the Total Cost field in the Cost Info subtask. If you need to edit the cost, do so in the original field of entry. Because system depreciation calculations use this data, use caution if you change the cost for a record once it has begun depreciating in the system. Occasionally, additional asset costs are discovered after depreciation has been posted for a record (for example, additional shipping costs). Alternately, returns may result in the reduction of cost after depreciation has been posted for the record.
One solution to record cost changes may be to adjust the appropriate cost field(s) in the Cost Info subtask. The disadvantages to this approach are the lack of a clear audit trail and the fact that depreciation expense may not be correctly stated until the depreciation year is complete. To compensate for these disadvantages, you could add notes to create an audit trail, or create the correct "catch-up" depreciation adjustment with a manually entered depreciation expense to be posted. (If you have set the System-Wide Configuration for Depreciation Calculations group box in the Fixed Assets Settings screen for catch-up calculations by selecting the Added to current period amount radio button, the system will automatically catch up depreciation, as long as the "catch-up" period of time is within the same depreciation year.)
Another solution might be to add an additional item for the same asset number with the cost equal to the positive or negative cost adjustment. When you use this technique, the audit trail is clearly preserved. In this situation, the asset will consist of more than one item number, which may or may not be considered a disadvantage.
The manner in which you deal with a "change-in-cost" issue depends on your company policies; it is important only that you handle these changes consistently.
This field is not available for user entry. The system automatically computes and displays an amount equal to the total cost of the asset less any salvage value from the Value field. Be certain to confirm the data in the Percent and Value salvage fields because they directly influence the system calculation of the Amount to Depreciate field.
The system will not automatically depreciate an amount greater than the amount that displays in this field.
For a new asset record, this field is blank because there is no corresponding Asset Template field. You should leave this field blank for a new record, because the system will automatically increase (or possibly decrease) the value in this field by the amount of depreciation posted when the Fixed Assets current period is closed, regardless of the basis (Date of Purchase or Fiscal Year) associated with the depreciation method assigned to this asset. The value in this field will be increased (or decreased) by the amount posted from the Current Pd Depreciation field. The value in this field is equal to the depreciation expense for the current fiscal year, exclusive of the value in the Current Pd Depreciation field.
If you use a Date of Purchase basis for the depreciation method associated with this record, however, the cumulative value in this field will be different from the value in the Amt Taken Purchase YTD field (except when the date of purchase coincides with the start of your fiscal year). The FYTD Depreciation field displays fiscal year data, while the Amt Taken Purchase YTD field displays purchase year data.
Please refer to Special Topic FA-3, "Calculate Depreciation," for additional information on how to correctly initialize this field.
For both new and historical records that are being initialized, the system will automatically increase or decrease the value in this field by the amount of depreciation posted when the Fixed Assets current period is closed. Data from this field is added to the data from the Prior FY Depreciation and Current Pd Depreciation fields to derive the Accum Depreciation calculated total.
This field will be updated automatically by the system when you perform the Costpoint Fixed Assets period close process on the last period in your fiscal year. The value in the FYTD Depreciation field will be added to the value in the Prior FY Depreciation field and the value in the FYTD Depreciation field will be set back to zero.
For an existing asset record, you can edit data that displays in this field, if needed. Because system calculations use this data to determine whether depreciation computations should take place (and how they should take place) for each record, use caution if you change this field for property records once they have begun depreciating in the system.
For a new asset record, this field is blank. There is no corresponding Asset Template field. You should leave this field blank for a new record. This field will be updated when you perform the Fixed Assets period close process on the last period in your fiscal year. The value in the FYTD Depreciation field will be added to the value in the Prior FY Depreciation field, and the FYTD Depreciation field will be set back to zero.
Please refer to Special Topic FA-3, "Calculate Depreciation," for additional information on how to correctly initialize this field.
For both new and historical records, data from this field is added by the system to the data from the FYTD Depreciation and Current Pd Depreciation fields to derive the Accum Depreciation field calculated total.
For an existing asset record, you can edit data that displays in this field, if needed. Because system calculations use this data to determine whether depreciation computations should take place (and how they should take place) for each record, use caution if you change this field for property records once they have begun depreciating in the system.
For a new asset record, this field is blank. There is no corresponding Asset Template field. You should leave this field blank for a new record, unless you want to overwrite the system calculation of annual depreciation.
This field will automatically be populated by the system when you calculate depreciation for this record, if you have selected the Auto Calculate Depreciation checkbox and the date in the Depr Start Date field is not a future date (later than the end of the current period). You can always make manual entries in this field, regardless of the status of the Auto Calculate Depreciation checkbox and the date in the Depr Start Date field. Enter all manual overwrites with caution, however.
For both new and historical records, data from this field is used by the system during depreciation calculations. You can perform depreciation calculations multiple times within the same accounting period. If you have made no manual corrections to critical fields (such as asset cost, annual depreciation, current depreciation year, periods remaining, and so on), there is no danger that the system will calculate a different annual depreciation value for the same asset in the same accounting period.
Annual depreciation is computed based on total cost (or cost minus salvage value) times the depreciation percentage (from the depreciation method assigned to the asset) for the year specified in the Curr Depr Yr field.
For an existing Asset record, you can edit data that displays in this field. Because system calculations use this data for depreciation calculations, however, use caution if you change this field for an asset record once it has begun depreciating in the system.
For a new asset record, blanks normally display in this field. There is no corresponding Asset Template field. (If you have unchecked the Auto Calculate Depreciation checkbox and you manually entered a value in this field last period, this field should still display the manually entered value.) You should leave this field blank for a new record unless you want to overwrite the system calculation of depreciation for the period.
This field will automatically be populated by the system when you calculate depreciation for this record, if you have selected the Auto Calculate Depreciation checkbox and the date in the Depr Start Date field is not a future date (later than the end of the current period). (The "current" Fixed Assets period is specified in the Posting Settings screen.) You can always make manual entries and edits in this field, regardless of the status of the Auto Calculate Depreciation checkbox and the date in the Depr Start Date field. Enter all manual entries and overwrites with caution, however.
For both new and historical records, data from this field is added by the system to the data from the FYTD Depreciation and Prior FY Depreciation fields to derive the Accum Depreciation field calculated total. When you close the current accounting period, the value in this field will automatically be set back to zero unless you have unchecked the Auto Calculate Depreciation checkbox.
You can perform depreciation calculations multiple times within the same Fixed Assets period. If you have made no manual corrections to critical fields (such as asset cost, annual depreciation, current depreciation year, periods remaining, and so on), there is no danger that the system will post the same depreciation expense for the same asset in the same Fixed Assets period after depreciation is re-calculated.
The system tracks monthly postings for each record and compares the value in the Current Pd Depreciation field with the value in the Amount Posted Curr Pd field. If the values in these fields are equal, there can be no additional postings to the G/L for the period. Only changes to the Current Pd Depreciation field can generate additional positive or negative depreciation expense entries if additional postings are performed for the current Fixed Assets period.
As long as the value in the Current Pd Depreciation field is different from the value in the Amount Posted Curr Pd field, the system will, within the same Fixed Assets period, always post the value needed to bring the Amount Posted Curr Pd field up to or down to the value in the Current Pd Depreciation field. For example, if you have calculated depreciation and the Current Pd Depreciation field displays $50.00, the value in the Amount Posted Curr Pd will also display $50.00 after posting to the General Ledger. If you now change the amount in the Current Pd Depreciation field to $75.00 and post again within the same Fixed Assets period, the system will recognize that an additional $25.00 is needed to bring these fields to an equal condition and will post $25.00 more. After this second posting, the amounts in the Current Pd Depreciation field and the Amount Posted Curr Pd will be equal. When the accounting period is closed, the amount displayed in the Amount Posted Curr Pd field will be added to the amount in the FYTD Depreciation field and the value in the Amount Posted Curr Pd field will be set back to zero.
The value in this field will be posted to the depreciation expense account(s) that you designated for this record in the Depr Exp Acct Alloc Code field in the Maintain Asset Account Info screen (or in the Code field in the Depreciation Expense Account group box of the Account Info for G/L Book subtask).
Current period depreciation expense is computed as a result of the Date of Purchase (DP) or Fiscal Year (FY) basis assigned to each depreciation method (established in Depr Methods - Basic Setup screen). The basic premise for depreciation calculations in which the catch-up amount is to be spread among remaining periods is as follows:
If you have linked a DP basis for depreciation method with the asset, this field will display the annual depreciation expense less the amount taken this purchase year divided by the number of periods remaining in the calendar year.
If you have linked a FY basis for depreciation method with the asset, this field will display the annual depreciation expense less the FYTD amount divided by the number of periods remaining in the fiscal year.
In the following simplified example, consider the basic differences in current period depreciation calculations for a $9,000 asset, useful life of five years, no salvage value, using straight-line depreciation, for both the FY and DP basis. For this example, the current fiscal year is CY 2002, the current Fixed Assets accounting period is 10, the number of accounting periods in the fiscal year is 12, and the start date is 10-01-02.
|
|
DP (Date of Purchase) |
FY (Fiscal Year) |
|
Asset Cost |
$9,000 |
$9,000 |
|
Annual Depreciation |
$1,800 |
$1,800 |
|
Current Pd Depreciation |
$150 |
$600 |
Using the DP basis for depreciation, the annual depreciation expense of $1,800 is divided by the number of accounting periods remaining in the purchase year (12). One period of expense is charged for the current period, irrespective of the fiscal year. The depreciation year begins at the date in the Depr Start Date field (10-01-2002).
Using the FY basis for depreciation, the annual depreciation expense of $1,800 is divided by the number of accounting periods remaining in the fiscal year. In the example above, there are only three accounting periods remaining in the fiscal year over which to spread the annual depreciation cost of $1,800.
For an existing asset record, you can edit data that displays in this field, if needed, but all edits should be made with caution.
The system automatically totals the values from the FYTD Depreciation, Prior FY Depreciation, and Current Pd Depreciation fields and displays the results in this non-editable field.
The system automatically subtracts the value in the Accum Depreciation field from the value in the Total Cost field and displays the results in this non-editable field.
In this group box, you can view the cumulative total of all postings to the General Ledger for the current accounting period.
This field is non-editable. For all records, both new and historical, this field is blank at the beginning of each accounting period. This field will automatically be populated by the system when you post depreciation for the first time in the accounting period. Subsequent postings of depreciation expense (within the same accounting period) for this record will automatically increase or decrease the value in this field because it displays the cumulative results of all postings for the accounting period. When you close the current Fixed Assets accounting period, the value in this field will automatically be set back to zero. You can perform depreciation calculations multiple times within the same Fixed Assets accounting period. If you have made no manual corrections to critical fields (such as asset cost, annual depreciation, current depreciation year, periods remaining, and so on), there is no danger that the system will post the same depreciation expense for the same asset in the same Fixed Assets accounting period after depreciation is re-calculated.
The system tracks monthly postings for each record and compares the value in the Current Pd Depreciation field with the value in the Amount Posted Curr Pd field. If the values in these fields are equal, there can be no additional postings to the G/L for the period. Only changes to the Current Pd Depreciation field can generate additional positive or negative depreciation expense entries.
As long as the value in the Current Pd Depreciation field is different from the value in the Amount Posted Curr Pd field, the system will, within the same Fixed Assets accounting period, always post the value needed to bring the amount in the Amount Posted Curr Pd field up to or down to the value in the Current Pd Depreciation field. For example, if you have calculated depreciation and the Current Pd Depreciation field displays $50.00, the amount in the Amount Posted Curr Pd field will also display $50.00 after posting to the General Ledger.
If you now change the amount in the Current Pd Depreciation field to $75.00 and post again within the same Fixed Assets accounting period, the system will recognize that an additional $25.00 is needed to bring these fields to an equal condition, and will post $25.00 more. After this second posting, the amounts in the Current PD Depreciation field and the Amount Posted Curr Pd will be equal. When the current Fixed Assets accounting period is closed, the amount displayed in the Amount Posted Curr Pd field will be added to the amount in the FYTD Depreciation field and the Amount Posted Curr Pd field will be set back to zero.
The system stores Asset Master data displayed in the G/L Book Info (Years) subtask of the Maintain Asset Master Info screen (and in the Maintain Asset G/L Book Info screen) in the ASSET (Asset) table.
The drop-down box in this subtask accesses data from the DEPR_MTHD (Depreciation Method Code) table.