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, e.g., you need to 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 Original Value, Est. 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:

Open the Assets, Positions, or Systems form.
Select the asset, position, or system for which to enter depreciation data, and then click the Depreciation tab.
Click Add Depreciation Type.
Depreciation Method—Select the depreciation method for the depreciation schedule. See Understanding Depreciation Methods and Daily Calculations for more information about depreciation methods.
Original Value—Enter the original value of the asset.
Est. Useful Life—Enter the estimated useful life of the asset, and then select the unit of measure of the estimated useful life in the adjacent field. If you select Days or Months as the unit of measure, you must enter the estimated useful life as a positive integer. If you select Weeks, Quarters, or Years, you can enter the estimated useful life as a decimal.
Note: If you select Weeks, Months, Quarters, or Years as the unit of measure, the system must convert the estimated 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.
Refer to the following for more information:
- Weeks—The system must convert the estimated useful life into days. The system multiplies the number you enter by 7 to determine the equivalent number of days, and then rounds the result to the nearest positive integer, e.g., .1 weeks x 7 = .7 days, which the system rounds to 1 day.
- Quarters—The system must convert the estimated useful life into months. The system multiplies the number you enter by 3 to determine the number of months, and then rounds to the nearest positive integer, e.g., .4 quarters x 3 = 1.2 months, which the system rounds to 2 months.
- Years—The system must convert the estimated useful life into months. The system multiplies the number you enter by 12 to determine the number of months, and then rounds to the nearest positive integer, e.g., .4 years x 12 = 4.8 months, which the system rounds to 5 months.
Residual Value—Enter the estimated value of the asset at the end of its useful life.
Est. Lifetime Output—Enter the units of output you estimate the equipment will produce over its lifetime if you selected Units of output as the Depreciation Method.
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.
Click Submit.