About the EM Asset Setup Form
Use this form to set up assets that you want to depreciate.
Once you set up the appropriate information for each asset (e.g. purchase price, depreciation start date, months to depreciate, depreciation method, etc.), you can then calculate the depreciation schedule. The schedule will identify the depreciation amounts to take each month for the life of the asset. When running the EM Depreciation Processing form, the system will use this schedule to determine the actual depreciation amount to post for the month, quarter, year, or whatever interval you choose.
- Asset Codes - An asset code identifies the depreciation item you
set up for a piece of equipment. More than one depreciation item can be set up for a
piece of equipment, each assigned its own asset code. For example:
- If you do a major rebuild on a piece of equipment, you can set up a second asset item for the same piece of equipment in order to depreciate the rebuilt piece separately.
- You can set up a single miscellaneous equipment number for all your office equipment, then set up separate assets for each item.
- Depreciation Method - There are two methods of depreciation available when
setting up assets:
Straight Line - You will use this method to take the same amount of depreciation for each month until the asset is fully depreciated.
Declining Balance (US & Canada) / Diminishing Value (Australia) - You will use this method to depreciate larger amounts in the first year and then decrease the amounts in subsequent years. The calculated amounts for each month will be based on the total amount to depreciate, the number of months in the depreciation period, and the acceleration factor. For more information about this method of depreciation, see Declining Balance / Diminishing Value Depreciation .
- The Depreciation Schedule - The depreciation schedule for an asset is displayed on the Schedule tab and is generally used after the schedule has been calculated to override calculated amounts or to enter to-date depreciation amounts when first coming on-line with existing assets. For more information, see The Depreciation Schedule .