Use this tab to enter information that determines the depreciation basis for an asset item.
The depreciation basis is used for calculating depreciation for an asset item when you run Depreciation Processing in the Asset Management application.
The GL Cost 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.
The depreciation basis is the amount of an asset's cost that you can claim as a deduction over the asset's life or recovery period. It is calculated as follows on this tab:
(Total Acquisition Cost x Business Use Percentage) – Salvage Value
In this topic, references to purchase orders include purchase orders, change orders, and release orders.
Contents
Acquisition Cost Grid
Each row in this grid is an acquisition cost for the asset item.
DPS uses these costs to determine the depreciation basis for the asset item.
For asset items that were generated automatically from purchase order or AP vouchers entries:
- The first row in this grid prefills with cost information for the asset item from the posted purchase order or AP voucher from which the asset item was generated. An asset item can be linked with only one purchase order line item or with an unlimited number of AP voucher line items.
- You can add rows to the grid to record more costs for the asset item. For example, you could add the cost to install
equipment to the acquisition cost. These additional cost rows are not linked with a posted transaction.
For asset items that you manually enter directly in the
Equipment hub:
You add rows to the grid to record the acquisition cost for the asset item. These costs are not linked to a posted transaction.
Costs Posted Across Multiple Periods
Each cost in the grid has a period entered for it. The period determines when the cost will be applied to the depreciation calculation. Example: You add a truck as an asset item in the
Equipment hub, and the cost of the truck in the Acquisition Cost grid has a period of January 2016. In April 2016, you add a hitch to the Acquisition Cost grid for the truck with a period of April 2016. The depreciation that is calculated prior to April 2016 does not include the hitch cost. Depreciation that is calculated after April 2016 includes the hitch cost.
Costs that Are Removed and Added Per an Asset Item Split
When you split an asset item in
, new rows are automatically added to the Acquisition Cost grid for the removal from the source asset item and the additions to the receiving asset items. The rows have
Insert in the
Type field, negative amounts for removed costs, positive amounts for added costs, and the
Description field displays either
Split to or
Split from, the
equipment number for the source or receiving asset item, and the journal entry posting sequence number for the split.
Acquisition Cost Grid Toolbar
| Field | Description |
|---|
| Acquisition Cost 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 insert a row in the grid and add acquisition cost information for the asset item. These costs are not linked to a posted transaction.
|
 Delete
|
Select a cost row in the grid that you want to delete and then click this option.
You can delete a cost row only if:
- The row was manually added to the grid using the
Insert option on the Acquisition Cost grid toolbar. These rows display
Insert in the
Type field.
- Depreciation has not been processed for the asset item.
Instead of deleting a row in the Acquisition Cost grid, you can clear the
Include check box in the row to prevent the row from being included in the depreciation basis calculation.
|
Acquisition Cost Grid Fields
| Field | Description |
|---|
| Type
|
This field prefills with one of the following types, which you cannot change:
- Purchase Order: This type displays if an asset item was generated automatically from purchase order, change order, or release order line items.
- AP Voucher: This type displays if an asset item was generated automatically from an AP voucher line item.
- Insert: This type displays when you click the
Insert option on the grid toolbar to add a cost for the asset item. These cost rows are not linked with a posted transaction.
|
| Include
|
This check box is selected by default and means that the cost row will be included in the depreciation basis calculation.
Clear this check box to omit the cost row from the depreciation basis calculation. If you clear this check box after one or more processing periods have completed, you receive the following warning:
"Warning: deselecting this item will change the depreciation basis of this asset and will impact the depreciation entries for this asset in future periods. Do you want to proceed? Yes or No.
|
| Vendor Name
|
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row that prefills with the posted purchase order or AP voucher record, this field prefills with the
vendor name from the posted record. The
vendor name is a hyperlink that opens the
vendor record in the
Vendor hub when you click it.
If you add more cost rows to the grid using the
Insert toolbar option, click the
Find icon for the
Vendor field to open the
Vendor lookup and then select a
vendor for the acquisition cost that you are adding for the asset item.
For asset items that you manually entered directly in the
Equipment hub
Click the
Find icon for the
Vendor field to open the
Vendor lookup and select a
vendor for the acquisition cost.
|
| Amount
|
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row in the grid that prefills with information from the line item of a posted purchase order or AP voucher, this field prefills with the line item amount from the posted record.
If an asset item is generated from a purchase order and later an AP voucher is posted for that purchase order in
, the
Amount field is updated with the amount from the AP voucher. The purchase order and its AP voucher may have different amounts. For example, the voucher could include taxes that the purchase order does not include.
If you add more cost rows to the grid with the
Insert toolbar option, enter an acquisition cost for the row.
For asset items that you manually entered directly in the
Equipment hub
Enter the acquisition cost amount in this field.
Multiple Currencies
If you use multiple currencies, the amount in this field is in the functional currency of the company for the asset item (entered in the
Company field on the General tab of the
Equipment form). For asset items that were generated from purchase orders, the currency of the amount could be a different transaction currency.
|
| Period
|
The period entered in this field determines the period in which the cost will be added to the depreciation basis for calculating depreciation. Example: You add a truck as an asset item in the
Equipment hub, and the cost of the truck in the Acquisition Cost grid has a period of January 2016. In April 2016, you add a hitch to the Acquisition Cost grid for the truck with a period of April 2016. The depreciation that is calculated prior to April 2016 does not include the hitch cost. Depreciation that is calculated after April 2016 includes the hitch cost.
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row in the grid that prefills with information from the posted purchase order or AP voucher, this field prefills with the period in which the record was posted. For purchase orders, this is the period in which the purchase order was final printed.
If an asset item is generated from a purchase order, and later an AP voucher is created and posted for that purchase order, the period in this field is updated with the period in which the AP voucher was posted.
If you add more cost rows to the grid using the
Insert toolbar option, this field prefills with the current period, which you can change.
For asset items that you manually entered directly in the
Equipment hub
This field prefills with the current period. You can select a different period from the drop-down list.
|
| Description
|
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row in the grid that prefills with information from the posted purchase order or AP voucher, this field prefills with the description of the line item from the purchase order or the AP voucher.
If you add more cost rows to the grid using the
Insert toolbar option, enter a description for the cost.
For asset items that you manually entered directly in the
Equipment hub
Enter a description for the cost.
For costs that are added or removed from an asset item when an asset item is split
When you split an asset item in
, new rows are automatically added to the Acquisition Cost grid to record the removal from the source asset item and the addition to the receiving asset items. The
Description field for the source asset item displays
Split to, the
equipment number for receiving asset item, and the journal entry posting sequence number for the split. The
Description field for the receiving asset item displays
Split from, the
equipment number for the source asset item, and the journal entry posting sequence number for the split.
|
| Voucher PO Number
|
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row in the grid that prefills with information from the posted purchase order or AP voucher, this field prefills with the purchase order number or AP voucher number.
If an asset item is generated from a purchase order and later an AP voucher is created and posted for the purchase order, this field continues to display the purchase order number, not the AP voucher number.
If you add more cost rows to the grid using the
Insert toolbar option, enter a purchase order number or AP voucher number in this field.
For asset items that you manually entered directly in the
Equipment hub
Enter a purchase order number or AP voucher number for it in this field.
|
| Account
|
For asset items that were generated automatically from a purchase order or an AP voucher
For the first row in the grid that prefills with information from the posted purchase order or AP voucher:
If you add more cost rows to the grid using the
Insert toolbar option, select an asset
account for the acquisition cost.
For asset items that you manually entered directly in the
Equipment hub
Click the
Find icon for the
Account field to open the
Account lookup select an asset
account for the acquisition cost.
|
| Life of Asset
|
This check box is automatically selected for each item in the grid and indicates that the cost in the row will be used to calculate deprecation for the life of the asset item.
Clear this check box if you are entering an impairment for an asset item in this grid. The impairment amount that you enter in the grid affects the depreciation calculation starting in the period that you enter in the
Period field for the impairment and going forward in future periods. The impairment amount will not be used to recalculate depreciation for prior periods.
If you are entering an impairment by changing the useful life in years on the GL Book tab instead of adding a row to the Acquisition Cost grid on the GL Cost tab, you must also clear the
Life of Asset check box for at least one row (any row) in the Acquisition Cost grid.
|
| Total Bar
|
The bar at the bottom of the grid shows the sum of the
Amount column in the grid, which is the total acquisition cost.
|
Fields Below the Grid
| Field | Description |
|---|
| Total Acquisition Cost
|
This field prefills with the sum of the amounts in the
Amount column in the Acquisition Cost grid, which you cannot change. This is the total acquisition cost of the asset item for depreciation purposes. The total acquisition cost amount prefills in the
Total Acquisition Cost field on the Additional Books tab.
|
| Business Use Percentage
|
This field prefills with
100, which you can change. This is the percentage of the asset item's acquisition costs that is allocated for business use for depreciation purposes.
|
| Less Salvage Value
|
Enter the estimated monetary amount that you expect to receive when you sell the asset item at the end of its useful life.
|
| Depreciation Basis
|
The depreciation basis determines how much of the asset item's cost you will write off each year.
Depreciation basis is calculated from the entries in the fields below the grid on this tab. The calculation is:
(Total Acquisition Cost x Business Use Percentage) – Salvage Value
|
| Comments
|
Enter any notes and comments about the asset item's acquisition costs and depreciation.
|
