In the Compute Projected Depreciation screen, you can calculate depreciation expense for future fiscal years/periods for currently owned assets and/or projected purchases, by book. Use this optional screen to enter projected future asset purchases, as desired.
If you compute future depreciation for projected purchases, you must first enter estimated future purchase data in this screen before you run the Compute Projected Depreciation process.
Because the purpose of projections functionality is to provide depreciation expense forecasts for budgeting purposes, it is assumed that you will enter projected purchases only for depreciable assets in this screen.
You will need to provide the asset "ownership" account, organization, and project (if applicable) data for the purchase, along with a purchase description, the purchase timing, and depreciation expense account allocation code information. In addition, you must enter depreciation methodology such as depreciation method, depreciation start date, and cost data for each book for which you want to enable depreciation expense computations for the purchase. You can also specify a depreciation expense override amount to be used each period in lieu of depreciation method computations on a book-by-book basis.
Although much of the same data (depreciation method, depreciation expense account allocation code, and so on) is required to compute depreciation for both currently owned assets and for projected future asset purchases, estimated purchases data entered in this screen is not the equivalent of Asset Master record data; as a result, future depreciation expense will not be posted to the G/L or mingled in any manner with currently owned Asset Master records.
You can print data from this screen using the Print Projected Asset Purchases Report.
You can enter projected asset purchases at any time in this screen. If you want to compute depreciation for the projected purchases in this screen, however, you should enter all future purchase data in this screen before you run the Compute Projected Depreciation process.
Data entered in this screen is retained until you make edits or deletions.
Use the fields in this group box to select the asset "ownership" account, organization, and project, if applicable, for the purchase. These fields correspond with the asset Account, Organization, and Project fields in the Account Info for G/L Book subtask of the Maintain Asset Master Info screen or in the Asset Account, Asset Organization, or Asset Project fields in the Maintain Asset Account Info screen that are required for each Asset Master record.
The asset "ownership" account combination specifies the General Ledger asset account, organization, and project numbers linked with the asset record. The asset account and asset organization are always required; an asset project is always optional. There are no special rules regarding the types of account/organization/project combinations that can be used as asset ownership. As such, asset "ownership" combinations can include balance sheet combinations, expense account combinations (to track items not capitalized), and/or project combinations for property that should be identified with a contract, and so on.
A valid asset account combination is system-required in this screen. At the minimum, a system-validated account and organization must be assigned as the "owner" of each asset record.
Asset "ownership" data in these fields will for most users mimic the asset "ownership" data already linked with your currently owned asset records. If you are projecting new types of purchases or purchases that will be "owned" by new G/L account combinations in the future, however, you may need to set up and assign G/L "ownership" combinations that are different from those used for your currently owned assets.
Enter, or use Lookup to select, a valid asset account in this required field to specify the account "ownership" for this projected purchase. Select the asset account carefully during Lookup. Because this is a standard Lookup to the ACCT table, you may find that you have selected an account that is not appropriate for asset ownership. The adjacent non-editable field displays the description for the selected account.
When you save this screen, the system will validate that the account is a detail account and that it is active. If the account fails one of these validations, you will need to either make corrections to the account or enter a different account number. (Additional validations regarding the account/organization/project data, as applicable, will also be performed before the screen can be saved. The system will validate that the account is valid for the organization, and if project-required, also valid for the project.)
Enter, or use Lookup to select, a valid asset organization in this required field to specify the organization "ownership" for this projected purchase. Select the asset organization carefully during Lookup. Because this is a standard Lookup to the ORG_ACCT table, you may find that you have selected an organization that is not appropriate for asset ownership. The adjacent display-only field displays the description for the selected organization.
When you save this screen, the system will validate that the organization is active. If the organization is not active, you will need to either make corrections to the organization or enter a different organization. (Additional validations regarding the account/organization/ project data, as applicable, will also be performed before the record can be saved. The system will validate that the organization is valid for use with the account. If the organization is restricted to specific projects, the system will also validate the organization-project relationship.)
Enter, or use Lookup to select, a valid asset project, as applicable, in this optional field to specify the project "ownership" for this projected purchase. Select the asset project carefully, as applicable, during Lookup. Because this is a standard Lookup to the PROJ table, you may find that you have selected a project that is not appropriate for asset ownership. The description for the selected project displays in the adjacent non-editable field.
When you save this screen, the system will validate that the project level is valid and active. If the project fails these validations, you will need to either make corrections to the project or enter a different project. (Additional validations regarding the account/organization/project data, as applicable, may also be performed before the record can be saved, such as checking that the account-organization combination linked with the project is valid.)
Enter, or use Lookup to select, the projected fiscal year of acquisition. This field is required.
The fiscal years available for selection using Lookup include only those fiscal years already set up in the Maintain FA Fiscal Years screen. The available fiscal years display in descending order, beginning with the most future fiscal year from the Maintain FA Fiscal Years screen.
Data in this column corresponds with the Fiscal Year field that is required for each Asset Master record in the Purchase Info subtask of the Maintain Asset Master Info screen (and in the Acq FY field in the Maintain Asset Purchase Info screen).
If you need to project future purchases for future fiscal years that are not displayed in Lookup, you must first exit this screen and establish the additional fiscal year data in the Maintain FA Fiscal Years screen (along with the period data for that year in the Maintain FA Accounting Periods screen).
Enter the projected accounting period of acquisition. This field is required. The accounting periods available for selection include only those periods already set up for the specified fiscal year in the Maintain FA Accounting Periods screen.
Data in this column corresponds with the Acct Pd field that is required for each Asset Master record in the Purchase Info subtask of the Maintain Asset Master Info screen (and the Acq Pd field in the Maintain Asset Purchase Info screen).
If you need to project future purchases for future fiscal years that are not displayed in the drop-down box, you must first exit this screen and establish the additional fiscal year data in the Maintain FA Fiscal Years screen along with the period data for that year in the Maintain FA Accounting Periods screen.
Enter the projected subperiod of acquisition. This field is required. Because depreciation calculations are not based on accounting subperiods, there is no validation of the subperiod data entered nor any Lookup or drop-down box functionality. The acquisition subperiod entered in this screen, although required, is an information field only and is not used by the system in computing projected depreciation expense.
Data in this column corresponds with the Subperiod field that is required for each Asset Master record in the Purchase Info subtask of the Maintain Asset Master Info screen (and the Acq Subpd field in the Maintain Asset Purchase Info screen).
Enter up to 30 alphanumeric characters to provide a description for the projected purchase. This field is required.
Data in this column corresponds with the optional Short field available for each Asset Master record in the Maintain Asset Master Info main screen (and the Short Description field in the Maintain Asset Desc Info screen).
If you are projecting future asset purchases on a detailed asset-by-asset basis, you may want to enter specific descriptive information in this column such as "Truck," "Commuter Van," and so on. In addition, if you have procedures in place to track actual purchases against projected purchases; you may want to embed data such as a Capital Expenditures Request Number, and so on with the description.
If you are projecting future asset purchases on a less detailed level, you may want to enter more general descriptive information that corresponds with the names of your G/L asset "ownership" accounts or your classification codes, such as "Vehicles," "Computer Equipment," and so on.
Enter, or use Lookup to select, the depreciation expense account allocation code. This data is ALWAYS required, regardless of the data in the Depr Basis G/L Book column.
Data in this column corresponds with the Code field that is required for each Asset Master record in the Depreciation Expense Account group box of the Account Info for G/L Book subtask of the Maintain Asset Master Info screen (and the Depr Exp Acct Alloc Code field in the Maintain Asset Account Info screen).
The depreciation expense account allocation code specifies one or more General Ledger account and organization combination(s) (and optional project, reference 1, and reference 2 data) to which depreciation is posted for currently owned assets. For projected purchases, the code specifies the expense account/organization/project/reference 1/reference 2 combination(s) to which depreciation would be posted if the purchase had actually transpired and an Asset Master record had been created.
Depreciation expense account allocation code data in this column will for most users mimic the depreciation expense account allocation codes data already linked with your currently owned asset records. If you are projecting new types of purchases and/or new G/L depreciation expense account combinations for the future, however, you may need to set up and assign depreciation expense account allocation codes that are different from those used for your currently owned assets.
Enter the estimated amount to depreciate (total cost less salvage value) for the G/L Book. This column is optional. (Although cost data is not required to save data in this screen, the system will not compute future depreciation if this value is equal to "0.00.")
Data in this column corresponds with the Amount to Depreciate field for each Asset Master record in the G/L Book Info (Years) and (Units) subtasks of the Maintain Asset Master Info screen (and the G/L Book Amt to Depreciate field in the Maintain G/L Book Info screen). The system computes the value for this non-editable field by subtracting the Salvage Value amount from the Total Cost amount.
Regardless of the amount specified in the optional G/L Book Depr Exp Override Amt Per Period column, the future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value (even if the future useful life has not yet been completed).
If you add, edit, or delete the value in this column, the system displays the following message:
"Do you wish to update the Amount to Depreciate column(s) of the other books with the amount in this field?"
If you select the Yes pushbutton, the G/L Book Amount to Depreciate value from this column will be copied to and display as the cost for all applicable optional books. This default feature will save you some data entry effort because, for the majority of users, the G/L Book cost amount is normally identical for the optional books.
You can select the No pushbutton, but you will then need to manually enter the cost amount for all applicable optional books, even if the amounts are the same as the cost amount for the G/L Book. Most users will select the No pushbutton if there is a need to assign a different cost basis for each optional book (for purposes of stepped-up depreciation basis, and so on).
Enter "Y" (Years), "U" (Units), or "L" (Lease Periods) to indicate the depreciation basis for the G/L Book. This field is required.
The system displays "Y" (Years) as the default, even if you have specified that a depreciation expense override amount be used each period for the life of the projected purchase (instead of the amount computed using the specified depreciation method code).
Data in this column corresponds with the Depr Based On radio button selection options required for each Asset Master record in the Maintain Asset Master Info main screen (and in the Maintain Asset Desc Info screen).
Depending on your selection in this column, you should not enter data in some columns of the table window. For example, if you have selected a "Y" (Years) depreciation basis methodology, do not enter data in the Units Used Each Period column, the Monthly Lease Payment column, and so on.
Enter, or use Lookup to select, the depreciation method code for the G/L Book. This data is ALWAYS required if the value in the G/L Book Depr Basis column is "Y" (Years), even if you have specified that a depreciation expense override amount be used each period for the life of the projected purchase (instead of the amount computed using the specified depreciation method code).
Data in this column corresponds with the Depr Method Code field for the G/L Book for each Asset Master record in the G/L Book Info (Years) subtask of the Maintain Asset Master Info screen (and the G/L Book Depr Method Code field in the Maintain G/L Book Info screen).
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some columns of the table window. For example, if you have selected a "Y" (Years) depreciation basis methodology, you should not enter data in the Units Used Each Period column, the Monthly Lease Payment column, and so on.
Enter the depreciation start date for the G/L Book. This field is optional. Although you can save a record without this data, the system will not compute future depreciation if this data is missing.
The G/L Book depreciation start date in this column must be a future date that is later than the period ending date of the current accounting period. The Fixed Assets "current" accounting period is specified in the Posting Settings screen during initialization and updated by the system each month during the Close Fixed Assets Period process.
Data in this column corresponds with the Depr Start Date field for the G/L Book for each Asset Master record in the G/L Book Info (Years) and (Units) subtasks of the Maintain Asset Master Info screen (and the G/L Book Depr Start Date field in the Maintain G/L Book Info screen).
The following major differences are in effect regarding the rules for this date:
The depreciation start date for a projected purchase must be a future date (later than the period ending date of the current accounting period) in order to be included in system depreciation calculations.
The depreciation start date for a currently owned asset must be on or before the period ending date of the current accounting period in order to be included in system depreciation calculations.
Enter an optional depreciation expense override amount per period to be used for the G/L Book in lieu of future depreciation calculated by the system using the specified depreciation method code.
Data in this column corresponds with the Current Pd Depreciation field for the G/L Book for each Asset Master record in the G/L Book Info (Years) and (Units) subtasks of the Maintain Asset Master Info screen (and the G/L Book Current Pd Depreciation field in the Maintain G/L Book Info screen). Just as you are able to overwrite the system-computed current period depreciation amount for your currently owned assets, this column functions in the same manner for projected depreciation for your projected purchases.
Regardless of the amount specified in this optional field, future projected depreciation expense will always stop at the estimated amount to depreciate and will not exceed this value (even if the future useful life has not yet been completed).
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some of the columns in the table window. For example, if you have selected a "Y" (Years) depreciation basis methodology, you should not enter data in the Units Used Each Period column, the Monthly Lease Payment column, and so on.
Enter the estimated amount to depreciate (total cost less salvage value) for this book in this optional column, as applicable. (Although cost data is not required to save data in this screen, the system will not compute future depreciation if this value is equal to "0.00.")
Data in this column corresponds with the Amount to Depreciate field for each Asset Master record in the Other Books Info subtask of the Maintain Asset Master Info screen (and the Book 2 (or your label) Amt to Depreciate field in the Maintain G/L Book Info screen and Maintain Other Books Info screen). The system computes the value for this display-only field by subtracting the Salvage Value amount from the Total Cost amount.
Regardless of the amount specified in the Book 2 (or your label) Depr Exp Override Amt Per Period column, the future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value, even if the future useful life has not yet been completed.
Note that if you add, edit, or delete the value in the G/L Book Amount to Depreciate column, the system displays the following message:
"Do you wish to update the Amount to Depreciate column(s) of the other books with the amount in this field? "
If you select the Yes pushbutton, the value in the G/L Book Amount to Depreciate column will be copied to and will display as the cost for all applicable optional books. Use this default feature to save you some data entry effort because, for the majority of users, the G/L Book cost amount is normally identical for the optional books.
You can select the No pushbutton, if desired. If you need to assign a different cost basis for each optional book (for purposes of stepped-up depreciation basis, and so on) you will need to manually edit the cost for each optional book, as applicable.
Enter, or use Lookup to select, the depreciation method code for this book in this optional column.
Data in this column corresponds with the Depr Method Code field for this book for each Asset Master record in the Other Books Info subtask of the Maintain Asset Master Info screen (and the Maintain Other Books Info screen).
Regardless of the amount specified in the Book 2 (or your label) Depr Exp Override Amt Per Period column, the future projected depreciation expense will always stop at the estimated amount to depreciate and will not exceed this value (even if the future useful life has not yet been completed).
Enter the depreciation start date for this book in this optional column. Although you can save a record without this data, the system will not compute future depreciation if this data is missing.
Data in this column corresponds with the Depr Start Date field for this book for each Asset Master record in the Other Books Info subtask of the Maintain Asset Master Info screen (and in the Book 2 (or your label) Depr Start Date field in the Maintain Other Books Info screen).
The depreciation start date in this column must be a future date that is later than the period ending date of the current accounting period. The Fixed Assets "current" accounting period is specified in the Posting Settings screen during initialization. (Only G/L book data is posted to the General Ledger. Although start date verification for other books refers back to the Posting Settings screen to determine the current period, depreciation data for optional books is never posted to the G/L.)
The following major differences are in effect regarding the rules for this date:
The depreciation start date for a projected purchase must be a future date (later than the period ending date of the current accounting period) in order to be included in system depreciation calculations.
The depreciation start date for a currently- owned asset must be on or before the period ending date of the current accounting period in order to be included in system depreciation calculations.
Enter an optional depreciation expense override amount per period to be used for this book in lieu of future depreciation calculated by the system using the specified depreciation method code.
Data in this column corresponds with the Current Pd Depreciation field for this book for each Asset Master record in the Other Books Info subtask of the Maintain Asset Master Info screen (and in the Book 2 (or your label) Current Pd Depreciation field in the Maintain Other Books Info screen). Just as you are able to overwrite the system-computed current period depreciation amount for your currently owned assets, this column functions in the same manner for projected depreciation for your projected purchases.
Regardless of the amount specified in the Book 2 (or your label) Depr Exp Override Amt Per Period column, the future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value (even if the future useful life has not yet been completed).
Please refer to the documentation for the Book 2 (or your label) Amount to Depreciate column.
Please refer to the documentation for the Book 2 (or your label) Depr Method Code column.
Please refer to the documentation for the Book 2 (or your label) Depr Start Date column.
Please refer to the documentation for the Book 2 (or your label) Depr Exp Override Amt Per Period column.
If you have entered "L" (Lease Periods) in the G/L Book Depr Basis column, you should also enter the number of future lease payments remaining. Although you can save a record without this data, the system will not compute future depreciation if this data is missing.
Data in this column corresponds with the Lease Payments Remaining field for the G/L Book for each Asset Master record in the G/L Book Info (Lease) subtask of the Maintain Asset Master Info screen (and in the Maintain G/L Book Info screen).
Regardless of the amount specified in the Monthly Lease Payment column, the future projected depreciation expense will always stop at the estimated amount to depreciate and will not exceed this value (even if the future useful life has not yet been completed).
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some columns of this table window. For example, if you have selected a "L" (Lease Periods) depreciation basis methodology, do not enter data in the Units Used Each Period column, the G/L Book Depr Method Code column, and so on.
If you have entered "L" (Lease Periods) in the G/L Book Depr Basis column, you should also enter the monthly lease payment to be used for this projected purchase. Although you can save a record without this data, the system will not compute future depreciation if this data is missing.
Data in this column corresponds with the Monthly Payment field for the G/L Book for each Asset Master record in the G/L Book Info (Lease) subtask of the Maintain Asset Master Info screen (and in the Monthly Lease Payment Amount field in the Maintain G/L Book Info screen).
Regardless of the amount specified in the Monthly Lease Payment column, the future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value (even if the future useful life has not yet been completed).
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some of the columns in this table window. For example, if you have selected a "L" (Lease Periods) depreciation basis methodology, do not enter data in the Units Used Each Period column, the G/L Book Depr Method Code column, and so on.
If you have entered "U" (Units) in the G/L Book Depr Basis column, you should also enter the number of units estimated for use each future period. Although you can save a record without this data, the system will not compute future depreciation if this data is missing.
Data in this column corresponds with the Current Units Used field for the G/L Book for each Asset Master record in the G/L Book Info (Units) subtask of the Maintain Asset Master Info screen (and in the Maintain G/L Book Info screen).
For units-based depreciation, the system computes depreciation in this screen by multiplying the value in the Units Used each Period column times the value in the Std Rate Per Unit of Usage column. Because no time periods have been specified, the system uses the value in the G/L Book Amount to Depreciate column as the limiter. The future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value.
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some columns in the table window. For example, if you have selected a "U" (Units) depreciation basis methodology, do not enter data in the Units Used Each Period column, the Monthly Lease Payment column, and so on.
If you have entered "U" (Units) in the G/L Book Depr Basis column, you should also enter the standard depreciation rate per unit of usage to be used in system computations for future periods. Although you are permitted to save a record without this data, note that the system will not compute future depreciation if this data is missing.
Data in this column corresponds with the Std Depr Rate Per Unit of Usage field for the G/L Book for each Asset Master record in the G/L Book Info (Units) subtask of the Maintain Asset Master Info screen (and in the Maintain G/L Book Info screen).
For units-based depreciation, the system computes depreciation in this screen by multiplying the value in the Units Used Each Period column times the value in the Std Rate Per Unit of Usage column. Because no time periods have been specified, the system uses the value in the G/L Book Amount to Depreciate column as the limiter. The future projected depreciation expense will always stop at the estimated amount to depreciate, and will not exceed this value.
Depending on your selection in the G/L Book Depr Basis column, you should not enter data in some columns of the table window. For example, if you have selected a "U" (Units) depreciation basis methodology, do not enter data in the Units Used Each Period column, the Monthly Lease Payment column, and so on.
The Projected Purchases (FA_PRJTD_PURCHASE) table stores the results of data entered or edited in this screen.
Lookups and drop-down boxes, as applicable, access the following tables:
ACCT (Account)
ORG_ACT (Organization/Account)
PROJ (Project)
ASSET (Asset)
FA_FY_INFO (Fixed Assets FY Info)
FA_PD_INFO (Fixed Assets Pd Info)
DEPR_MTHD (Depreciation Method)
DEPR_EXP_ALC_CD (Depreciation Expense Allocation Code)
You can print the data from this table by running the Print Projected Asset Purchases Report using a variety of selection criteria.