This tab records shows the depreciation status, accounts impacted and all other information that serve as the basis for calculations.
It is the allocation of cost of fixed assets over their useful life owing to their wear and tear over a period of time. Fixed assets, with the exception of land, depreciate, over time as they are used. Since their productive usefulness decreases with constant, use their initial cost is apportioned to expense over their estimated useful life. This allocation of cost over their useful life is known as depreciation.
The amount of depreciation computed for each period is reported on the income statement as an expense and the cumulative amount of depreciation expense for all past periods since acquisition is deducted on the balance sheet from the cost of the asset.
1.The Depreciation Method field specifies what method is used when depreciating an asset.
2.The Depreciation Begin Month field is a read only field that shows the same month entered in the Date Placed In Service field.
3.The Life (in years) field is used to enter an estimate of how long an asset can be expected to be usable in trade or business or to produce income.
4.The Convention field affects the amount of depreciation in the beginning and end of the accounting period. Full Month convention is prorated according to the number of months the asset is used in service during the year, including the month placed in service.
5.The Adjusted Cost field is used to enter the original cost of the asset, plus or minus adjustments. This differs from the acquisition cost in the sense that this cost is the value upon which all other calculations are based.
6.The Salvage Value field is used to enter the estimated value of an asset at the end of its useful life.
1.The Last Depreciation Date is a read only field that shows the last time a depreciation transaction was generated.
2.The Depreciation Done is a read only field that shows the total amount of the asset that has been depreciated.
3.The Current Book Value is a read only field that shows the book value of the asset and is updated every time depreciation is run. The book value is the original cost minus accumulated depreciation.
4.The Last Depreciation Run is a read only field that shows the amount of depreciation calculated the last time the asset was depreciated.
1.The YTD (Year-To-Date) Depreciation is a read only field that shows the total amount of depreciation calculated from the beginning of the current year up to the date of the last run.
2.The LTD (Life-To-Date) Depreciation is a read only field that shows the total amount of the depreciation calculated from the beginning the asset is depreciated up to the date of the last run.
3.The As Of is a read-only field that shows the date when the asset was last depreciated.
1.The Accumulated Depreciation Account field is where you may setup the account where depreciation has to be accumulated.
2.The Depreciation Expense Account field is where you may setup the account to which the depreciation expense should be charged.
Background on the toolbar buttons such as Acquire, Dispose, Transfer can be reviewed in the Fixed Assets help section. See: Fixed Assets