Use this tab to enter depreciation or amortization information for an asset item.
This information is used for calculating depreciation for an asset item when you run Depreciation Processing in the Asset Management application. The information on the GL Book tab applies for your company's general ledger or "GL book," which is based on Generally Accepted Accounting Principles (GAAP) for your company's financial statements.
Use the Additional Book tab if you need to set up and enter one or more additional depreciation books for calculating depreciation or amortization differently than the way it is calculated for your general ledger.
The GL Book tab:
- Displays only if you have the Asset Management application activated.
- Is enabled only if the
equipment item is an asset item, which means that it was created from a purchasing item whose category type is Capital Items. The item category type displays in the
Type field on the General tab of the
Equipment form.
Contents
Asset Classification Section
| Field | Description |
|---|
| Calculation
|
Use the drop-down list in this field to select the accounting process to use for the asset item.
Options are:
-
Depreciation: Select this option for asset items that you want to depreciate that are not capital leases.
-
Prepaid: Select this option for prepaid asset items that will be amortized instead of depreciated, such as pre-paid insurance. When you select
Prepaid, the
Method field on this tab prefills with
Straight-line.
- Lease: Select this option for leased asset items that will be amortized instead of depreciated. The
Method field on this tab prefills with
Straight-line. Complete the information in the Lease Details section on this tab.
The fields in the GL
Accounts section on this tab change appropriately, based on what you select in the
Calculation field.
|
| Asset Type
|
The items in the drop-down list in this field display only after you enter a
project for the asset item on the General tab of the
Equipment form.
From the drop-down list in this field, select the asset type for the asset item. An example of an asset type is "Office Furniture." The asset types that display in the drop-down list are entered on the Asset Type tab in
(with the
In Use check box selected).
The asset type that you enter can determine what prefills in the following fields on the GL Book tab, based on the default entries that were made for the asset type in Asset Management Settings:
- Property Type
- Method
- Useful Life in Years
- Accumulated Depreciation GL
Account
- Depreciation Expense GL
Account
What you enter in the
Calculation field also determines whether these fields prefill and whether you can change the prefilled entries in these fields. For example, if you selected
Lease in the
Calculation field, you cannot change the prefilled entry in the
Method field, and the
Useful Life in Years field does not apply for leases.
|
| Property Type
|
This field prefills with the property type for the asset item, based on the asset type that you entered in the
Asset Type field. You can change the prefilled entry as needed. Property type is for informational purposes.
Each asset type has a property type specified for it on the Asset Type tab in
.
|
| Method
|
The method entered in this field determines how the asset item's depreciation or amortization is calculated.
This field prefills as follows, based on what you enter in the
Calculation field:
| Entry in the Calculation Field
|
Method that Prefills in the Method Field
|
| Depreciation
|
The
Method field prefills, based on the asset type that you enter in the
Asset Type field. From the drop-down list in the
Method field, you can select a different method for the asset item.
Each asset type has a depreciation method entered for it on the Asset Type tab in
. Depreciation methods are entered on the Methods tab in
.
|
| Prepaid
|
Straight-line, which you cannot change
|
| Lease
|
Straight-line, which you cannot change
|
|
| Improvement Type
|
Use this field and the
Improved Asset field if the current asset item that you have open and displayed on the
Equipment form has been used to improve another asset item (for example, to repair another asset item). These fields allow you to associate the two asset items so that you can see the association listed on the
Equipment Summary report in
. Each of the asset items will be depreciated separately.
In the
Improvement Type field, enter the type (classification) of the additional improvement expenditure. The items that display in the
Improvement Type drop-down list are entered on the Improvements tab in
with the
In Use check box selected.
When you select a classification other than
<None> in the
Improvement Type field, the
Improved Asset field in the Asset Classification section is enabled. In the
Improved Asset field, you enter the asset item that was enhanced by the asset item that is currently displayed on the
Equipment form.
Example: You bought a truck, and later you attached a winch to it. You entered asset item A in period 1 for the truck and asset item B in period 6 for the winch. In the
Equipment hub, you open asset item B (winch), select
Betterment in the
Improvement Type field, and enter asset item A (truck) in the
Improved Asset field.
If you instead want to add additional costs for the current asset item that
will be included in the current asset item's depreciation basis for calculating depreciation, you can do either of the following:
- Enter a line item on an AP voucher in Transaction Entry and associate it with the current asset item. When you post the voucher, this line item is added to the Acquisition Cost grid on the GL Cost tab in the
Equipment hub.
- Enter an Insert type additional cost in the Acquisition Cost grid on the GL Cost tab of the
Equipment hub. Do this only if you already recorded the cost for the insert in your general ledger.
|
| Asset Status
|
From the drop-down list in this field, select the status of the asset item.
-
Active: Select this status if the asset item is currently in use at your company and you will depreciate it. You must select this option in order to run depreciation for the asset item in
.
-
Inactive: Select this status for an asset item that is accumulating costs, but which has not yet been placed into service. You cannot run depreciation for an inactive asset item in
. When you unpost an asset item that was disposed, the
Asset Status field automatically changes from
Disposed to
Inactive.
-
Disposed: When you dispose of an asset item in
, the
Asset Status field prefills with
Disposed. A status of disposed indicates that you removed an asset item from your general ledger books because you sold or scrapped the item. The only way to change this status is to undo the transaction posting for the disposal in
. When you undo the disposal posting, the
Asset Status field for an asset item automatically changes from
Disposed to
Inactive. You can change the status from
Inactive back to
Active.
|
| Acquisition Date
|
Enter the date that you acquired the asset item. This date is for informational purposes.
|
| In Service Date
|
This field applies only if you selected
Depreciate or
Prepaid in the
Calculation field on this tab.
Enter the date that you acquired the asset item. This date determines the period in which the depreciation calculation starts for the asset item.
DPS calculates a full month of depreciation for the period, regardless of the day within the period that you specified as the in-service date.
|
| Disposal Date
|
When you dispose of an asset item in
, the date that you entered in the
Disposal Date field on the Disposal Processing form prefills in this field. You can change the prefilled date.
|
| Useful Life in Years
|
This field does not apply when you select
Lease in the
Calculation field.
The number of years of useful life determines how many periods in total are used in the depreciation calculation for the asset item.
This field prefills with the number of years of useful life for the asset item, based on the asset type that you entered for the asset item in the
Asset Type field. You enter the useful life in years for an asset type on the Asset Type tab in
. You can change the prefilled years in the
Useful Life in Years field only if the depreciation method in the
Method field is
Straight-line.
When you change the useful life in years after depreciation has been calculated for an asset item, you must also clear the
Life of Asset check box for at least one cost row (any row) in the Acquisition Cost grid on the GL Cost tab.
For asset items that are leases, (Lease is entered in the
Calculation field), the lease start and end dates that you enter determine the number of periods for processing amortization for the lease.
|
| Improved Asset
|
This field is enabled only if you selected a type other than
<None> in the
Improvement Type field on this tab.
Click the
Find icon beside the
Improved Asset field. On the
Equipment lookup, select an asset item that was enhanced by the current asset item that you have open and displayed on the
Equipment form.
The two asset items are each depreciated separately, but by associating them here, you will be able to see the association between the two listed on the
Equipment Summary report in
.
Example: You bought a truck, and later you attached a winch to it. You entered asset item A in period 1 for the truck and asset item B in period 6 for the winch. In the
Equipment hub, you open asset item B (winch), select
Betterment in the
Improvement Type field and enter asset item A (truck) in the
Improved Asset field.
If instead, you want to add additional costs for the current asset item that
will be included in the current asset item's depreciation basis for calculating depreciation, you can do either of the following:
- Enter a line item for an AP voucher in Transaction Entry and associate it with the current asset item. When you post the voucher, the line item is added to the Acquisition Cost grid on the GL Cost tab in the
Equipment hub.
- Enter an Insert type additional cost in the Acquisition Cost grid on the GL Cost tab of the
Equipment hub. Do this only if you have already recorded the cost for the insert in your general ledger.
|
GL
Accounts Section
The name of the fields in this section differ, depending on what you select in the
Calculation field on this tab.
| Field | Description |
|---|
| First Field in the GL
Accounts Section: Accumulated Depreciation, Prepaid, or Accumulated Amortization
|
| Entry in the Calculation Field
|
Name of This Field
|
| Depreciation
|
Accumulated Depreciation
|
| Prepaid
|
Prepaid
|
| Lease
|
Accumulated Amortization
|
This is the asset
account that will be used when you process depreciation in
for the asset item.
This field prefills, based on the asset type that you entered for the asset item in the
Asset Type field on this tab. It prefills with the
account entered in the
Accumulated Depreciation
Account field for an asset type on the Asset Type tab in
. Click the
Find icon beside the
Accumulated Depreciation,
Prepaid, or
Accumulated Amortization field to open the
Account lookup and select a different
account. The name of the
account that you select displays to the right of the field.
|
| Second Field in the GL
Accounts Section: Depreciation Expense, Prepaid Expense, or Amortization Expense
|
| Entry in the Calculation Field
|
Name of This Field
|
| Depreciation
|
Depreciation Expense
|
| Prepaid
|
Prepaid Expense
|
| Lease
|
Amortization Expense
|
This is the indirect
account or other expense
account that will be used when you process depreciation in
for the asset item.
This field prefills based on the asset type that you entered for the asset item in the
Asset Type field on this tab. It prefills with the
account entered in the
Depreciation Expense
Account field for an asset type on the Asset Type tab in
. Click the
Find icon beside the
Depreciation Expense,
Prepaid Expense, or
Amortization Expense field to open the
Account lookup and select a different
account. The name of the
account that you select displays to the right of the field.
|
Lease Details Section
This section is enabled when you select
Lease in the
Calculation field on this tab.
| Field | Description |
|---|
| Lease Start Date and Lease End Date
|
Enter the start date and end date of the lease in these two fields. These dates determine the number of periods to amortize the lease and the period in which to start processing amortization when you run depreciation processing.
Example: You enter a lease start date of January 15, 2016 and a lease end date of January 14, 2017. Amortization will be calculated for 12 periods, starting in the period that begins after February 14, 2016.
If you change the date in these fields after depreciation has been run for an asset item, you receive the following warning:
Warning: Depreciation has already been run on this item. Changing the Lease Start Date will impact future depreciation amounts.
|
| Lease
Vendor
|
Click
and select the lease
vendor for the asset item on the
Vendor lookup. This is for informational purposes.
|
| Lease
Contact
|
Click
and select the name of the
vendor
contact for the lease on the
Contact lookup. This is for informational purposes.
|
Unit Association Grid
Use this grid to associate a
unit with an asset item. Then, on the
Unit tab in
, you can track and view the
unit-generated billing value that is associated with the asset item.
The
units that you associate with asset items are set up in
in the desktop application. You enter transactions that record
unit-generated billing values in
(select
Units or
Units by
Project in the
Transaction Type field on the Transaction Entry form). You can also enter
units on timesheets.
You can associate one or more
units with an asset item in this grid. A specific
unit can be assigned only to one asset item.
Grid Toolbar
| Field | Description |
|---|
| Unit Association Drop-Down
|
Click the drop-down arrow on a grid header to complete any of the following actions:
- To print grid data, click
Print. On the Print Preview form, click
to send the grid data to your default printer.
- To export grid data to an Excel spreadsheet, click
Export to Excel. When Microsoft Excel opens, use its features to modify, print, or email the grid data, or to save the spreadsheet file locally.
- To turn on grouping for a grid, click
Enable Grouping. When a field displays with the instruction: "Drag a column header here to group by that column," drag and drop column headers into the field, in the sequence that you want them to display.
Not all options are available on all grids.
|
| Insert
|
Click this option to associate a
unit with the asset item. The
Unit lookup opens and you select one or more
units to associate with the asset item.
|
| Delete
|
In the grid, select a
unit that you want to remove from being associated with the asset item, and then click this option.
A specific
unit can be assigned only to one asset. You must delete the association between a
unit and an asset item if you want to associate the
unit with a different asset item.
|
Grid Fields
| Field | Description |
|---|
| Unit Number
|
This field prefills with the
unit number (from the
Units hub in the desktop application) of the
unit that you selected.
|
| Unit Table
|
This field prefills with the
unit table (from the
Units hub in the desktop application) of the
unit that you selected.
|
| Description
|
This field prefills with the description (from the
Units hub in the desktop application) of the
unit that you selected.
|
