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 (that is, purchase price, depreciation start date, months to depreciate, depreciation method, etc.), you can then calculate the depreciation schedule. The schedule identifies the depreciation amounts to take each month for the life of the asset. When you run the EM Depreciation Processing form, the system uses this schedule to determine the actual depreciation amount to post for the month, quarter, year, or whatever interval you choose.

Note: This feature is NOT designed to do all the depreciation calculations that may be required for tax purposes. It is designed to provide meaningful depreciation figures for purposes of equipment costing, and carry those figures into your General Ledger.

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

The depreciation method determines how the system calculates the depreciation schedule. There are two methods of depreciation available when setting up assets

  • Straight Line - Use this method to take the same amount of depreciation for each month until the asset is fully depreciated.
  • Declining Balance (US/CAN) / Diminishing Value (AUS) - 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 are 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 About Declining Balance / Diminishing Value Depreciation.

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 About the Depreciation Schedule.

Set up New Assets for Depreciation

Set up Existing Assets for Depreciation

About Disposing of Assets