On this tab, you can specify the changes to accounting parameters for the listed fixed asset. Once the document is posted, the changes will be applied to calculation of depreciation for the listed assets.
The list of Changes to Fixed Asset Parameters documents
Click Add on the toolbar to append a line to the document.
In the Fixed Asset column, select the fixed asset whose accounting parameters will be changed.
The Class column shows the class assigned to the fixed asset.
In the Depreciation method column, you can change the depreciation method to be applied to the fixed asset. The following depreciation methods are available :
- Straight Line: To calculate depreciation in equal monthly amounts during the fixed asset useful life.
- Units of Production: To calculate depreciation amounts proportionally to actual usage of the fixed asset.
In the UOM column, select the unit of measure for usage if the Units of Production method will be applied.
Use the Useful Life to Calculate Depreciation column to change the number of months the fixed asset is being planned for usage if the Straight Line depreciation method is selected for the asset.
The Amount of Work for Calculation in Natural Units column is used only for assets for which the Units of Production selected as the depreciation method.
A check box selected in the Depreciate column indicates that for this asset the system will calculate depreciation in accordance with the selected method. If you clear the check box, the fixed asset will be considered as temporarily at conservation and will not be depreciated.
The Expense GL Account column shows the default GL expense account selected for transactions with the fixed asset. If needed, you can assign another GL account from the Expenses section of COA.
In the Department column, you can change the department associated with usage of this fixed asset.
In the Expense Item (for Depreciation) column, you can select an expense item to be associated with this fixed asset.
Use the Business Activity column to select the business activity with which this fixed asset will be associated.
In the Cost Before Changes column, enter the initial cost of the fixed asset.
Use the Cost for Depreciation Calculation column to enter the updated cost of the asset.
The Revaluation GL Account column is intended for GL accounts to be used to register the gain or loss resulted form revaluing the asset cost.
In the Income/Expense Item (for Revaluation) column, specify the income/ expense item to associate this gain or loss.
The GL Accounts column shows the default GL accounts to be used for the fixed asset depreciation. You can change them if needed.
In the Transaction Content column, provide a brief explanation of these changes.