Entering depreciation data

Enter basic depreciation data for your equipment. The system calculates depreciation rates based on the information you enter. See Understanding Depreciation Methods and Daily Calculations, and Understanding Periodic Depreciation and Book Value Calculations.

Create multiple depreciation schedules for a single piece of equipment as necessary. For example, you need to create report depreciation information to GAAP and a state agency for a CHILLER. GAAP requires that you use the Straight Line method, but the state agency requires that you use the Double Declining Balance method. Create one depreciation schedule for the CHILLER using the GAAP type and Straight Line method and a second depreciation schedule using the state agency type and the Double Declining Balance method.

If you update Starting Value, Rem. Useful Life, the unit of measure, or Residual Value, the system automatically recalculates depreciation values.

Note: You can also manually recalculate depreciation values for all the equipment records in an organization for which you have defined depreciation data by clicking the Recalculate Depreciation Data on the Fiscal Years page of the Organizations form. See Defining fiscal years for asset depreciation Chapter 2 System security of the System Administrator’s Guide.

To enter depreciation data:

  1. Select Equipment > Assets.
    Select Equipment > Positions.

    Select Equipment > Systems.

  2. Select the asset, position, or system for which to enter depreciation data, and then click the Depreciation tab.
  3. Click Add Depreciation Type.
  4. Specify this information:
    Depreciation Method
    Select the depreciation method for the depreciation schedule. See Understanding Depreciation Methods and Daily Calculations for more information about depreciation methods.
    Starting Value
    Specify the starting value of the asset.
    Rem. Useful Life
    Specify the remaining useful life of the asset, and then select the unit of measure of the remaining useful life in the adjacent field. If you select Days or Months as the unit of measure, you must specify the remaining useful life as a positive integer. If you select Weeks, Quarters, or Years, you can specify the remaining useful life as a decimal.
    Note: If you select Weeks, Months, Quarters, or Years as the unit of measure, the system must convert the remaining useful life into number of days in order to calculate depreciation expenses. The system is able to automatically convert months into the appropriate number of corresponding days without performing any calculations. If you select Weeks, Quarters, or Years, the system must convert the unit of measure into days or months in order to determine the corresponding number of days.

    See these terms for more information:

    • Weeks

      The system must convert the remaining useful life into days. The system multiplies the number you specify by 7 to determine the equivalent number of days, and then rounds the result to the nearest positive integer. For example, .1 weeks multiplied by 7 equals .7 days, which the system rounds to 1 day.

    • Quarters

      The system must convert the remaining useful life into months. The system multiplies the number you specify by 3 to determine the number of months, and then rounds to the nearest positive integer. For example, .4 quarters multiplied by 3 equals 1.2 months, which the system rounds to 2 months.

    • Years

      The system must convert the remaining useful life into months. The system multiplies the number you specify by 12 to determine the number of months, and then rounds to the nearest positive integer. For example, .4 years multiplied by 12 equals 4.8 months, which the system rounds to 5 months.

    Relative Start
    Specify the relative start for the amount of time between the commission date and when the depreciation event occurs.
    Relative Start UOM
    Specify the unit of measure (UOM) for the relative start date.

    For example, if Relative Start is set to 5 and theRelative Start UOM is set to years, then the depreciation event occurs five years after the commission date for the equipment.

    Residual Value
    Specify the estimated value of the asset at the end of its useful life.
    Est. Lifetime Output
    Specify the units of output you estimate the equipment will produce over its lifetime if you selected Units of output as the Depreciation Method.
    Depreciation Category
    Select the depreciation category.
    Depreciation Type
    Select a depreciation type.
    Note: Depreciation types are linked to the DETP entity for which you must define your depreciation type codes. Contact your system administrator for more information.
    From Date
    Specify the starting date to calculate deprecation.
    Change Value
    Specify an amount by which to change the Starting Value of the asset if the Depreciation Category is Increase Value or Decrease Value.
    Change Life
    Specify an amount by which to change the Rem. Useful Life. of the asset if the Depreciation Category is Increase Life or Decrease Life.
    Change Estimated Lifetime Output
    Specify an amount by which to change the Est. Lifetime Output of the asset if the Depreciation Category is Increase Estimated Lifetime Output or Decrease Estimated Lifetime Output.
    Notes
    Specify additional detail about the depreciation of the equipment.
  5. Click Submit.