Creating asset books

Select .

On the Unreleased tab, open an asset record.

On the Books tab, click Create.

Select the name of the book.

On the Main tab, specify this information:

Method: Select a depreciation method for each book.
Life: Specify in months the asset life.
Life Remaining: Specify in months the remaining asset life. If this field is blank, then it is equivalent to the asset life.
Spread Over Remaining Life: Select this option to calculate the future depreciation using the SL method with the full month convention. This is the formula to be used for the convention:
(Basis - Life To Date Depreciation) / Life Remaining according to the number of periods in calendar = Current Period Depreciation Amount
Note: If this field is selected and the Compute option set to Yes or Prospective, a warning message is displayed indicating that this is using both Compute and Spread Over Remaining Life, so any calculated YTD, LTD and/or adjustment transaction amounts will be based on the existing method, while depreciation projections will override this Method to Straight Line.
Convention: You can override the original convention code for this book. Select a convention code that is used in determining the first and last year's amounts of depreciation.
Basis: Specify the amount on which the depreciation calculations are based. This amount can differ from book to book.

In the Depreciation section, specify this information:

Year To Date

Select the year-to-date depreciation amount for the asset.

Life To Date

Select the life-to-date depreciation amount for the asset.

Use Code

Select a use code. This list shows how use codes are used:

To define the method to calculate depreciation and tax credit applications when an asset falls below a certain percentage of business use.
To set annual depreciation limits for listed assets.

Per US Federal tax laws, the property type of passenger automobile is limited in the amount of annual depreciation.

Compute Option

Select a compute option for how depreciation is calculated for the selected book if you add an asset with a previous in-service date. This field applies only to the selected book. This value overrides the value in the Compute Option field in the Asset record.

Life In Years

Specify the asset life in years. This field is calculated.

Years In Service

Specify the number of years that the asset has been in service. This field is tracked by the process.

Business Percent

Specify the percentage of the asset that is used for business.

Salvage Value

Specify the salvage value of the asset at the end of the asset's life.

In the Insurance section, specify this information:

Actual Insurance Value: Specify the actual insured value of the asset.
Calculation Method: Select the method to use for calculating insurance value.
Calculated Insurance Value: Specify the current computed value of the asset for insurance purposes. This value is calculated using the method that is selected in the Method field to calculate insurance.

In the Replacement section, specify this information:

Calculation Method: Select the method to use for calculating replacement value.
Calculated Replacement Value: Specify the current computed value of the asset for replacement purposes. This value is calculated using the method that is selected in the Method field to calculate insurance.

To calculate insurance and replacement values for selected assets, see Calculating insurance or replacement values.

In the Tax section, specify this information:

Tax Credit Table: Select a tax credit table. This value is used to define percentages for tax credit and for annual tax credit recapture for the asset.
Tax Credit: Specify a tax credit amount.
First Year Expense Amount: Specify the amount of the first year expense.

Click Save.

To review the projected annual depreciation based on the asset's basis and the selected depreciation method, click the Create Projections button.

To view the annual depreciation amounts, select the Projection Results tab.