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 "Changes of Fixed Asset Parameters (create)" form. The Fixed Asset tab
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.
The Useful Life (Months) subcolumn shows the number of months the fixed asset was planned for usage with the Straight Line depreciation method used for the asset. The Remaining Useful Life (Months) subcolumn shows the difference between the number of months of useful life and the number of months the asset has been depreciated.
Use the Revised Useful Life (Months) subcolumn 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.
In the UOM column, select the unit of measure for usage if the Units of Production method will be applied.
The Estimated Production Volume column is used only for assets for which the Units of Production selected as the depreciation method; it shows the production volume in the specified UOMS until which the asset will be considered fully depreciated.
A check box selected in the Depreciate column indicates that this asset will be depreciated after the change of its parameters.
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.
The Gross Cost column shows the gross cost of the fixed asset before the current changes.
Use the Revised Gross Cost column to enter the updated cost of the asset.
The Salvage Value subcolumn shows the salvage value defined earlier for this asset. The salvage value can be used as a base for sale price at the end of its useful life.
Use the Revised Salvage Value subcolumn to enter the new salvage value.
The Accumulated Depreciation column shows the amount of depreciation accrued since the start of depreciation.
The Depreciable Cost subcolumn is automatically populated with the amount that is equal to difference between the previous Gross Cost and Salvage Value.
The Revised Depreciable Cost subcolumn shows the new depreciable cost calculated based on the values of Revised Gross Cost, Accumulated Depreciation, and Revised Salvage Value columns.
The Revaluation GL Account column is intended for a GL account to be used to register the gain or loss resulted from 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.