Creating books for a leased asset

  1. From the Leases menu, select a lease record.
  2. Click Assets.
  3. Open a leased asset.
  4. On the Books tab, click Create.
  5. On the Main tab, specify this information:
    Book
    Select at least one book to a leased asset. You can assign an unlimited amount of books.
    Method
    Select a depreciation method for each book. For financed leases, the only option is Straight Line (SL).
    Life
    Specify in months the asset life. For finance leases where the lessee does not take ownership of the asset, the life is the lease term. If the lessee does take ownership then the life is the remaining life in months on the lease.
    Life Remaining
    Specify the remaining asset life in months. If this field is blank, then it is equivalent to the asset life.
    In Service Date
    Select the in-service date for the asset. If this field is blank, then the item purchase date is the default.
    Convention
    Select the convention code. You can override the original convention code for this book.
    Basis
    Specify the amount on which the depreciation calculations are based. This amount can differ from book to book.
  6. In the Depreciation section, specify this information:
    Year To Date
    Specify the year-to-date depreciation amount for the leased asset if you are not starting at zero.
    Life To Date
    Specify the life-to-date depreciation amount for the leased asset if you are not starting at zero.
    Use Code
    Select a personal use code to define the actions to take if the business use of the asset decreases past a certain percentage.
    Compute Option
    If you select No, then the adjustment is calculated and charged to the remaining open periods in the current year.

    If you select Yes, then the adjustment is calculated and charged to the current period.

    If you select Prospective, then the adjustment is charged to all open periods in the remaining life of the asset.

    Life In Years
    Specify the asset life in years.
    Years In Service
    Specify how many years the asset has been in service.
    Business Percent
    Specify the percentage of the asset that is used for business.
    Salvage Value
    Specify the salvage value of the asset. The value can be zero.
  7. In the Insurance section, specify this information:
    Actual Insurance Value
    Specify the actual insured value of the leased asset.
    Calculation Method
    Select the method to calculate the insurance value.
    Calculated Insurance Value
    Specify the current value of the asset for insurance purposes. The current value is calculated using the method that is selected in the Calculation Method field.
  8. In the Replacement section, specify this information:
    Calculation Method
    Select the method in calculating replacement value.
    Calculated Replacement Value
    Specify the current computed value of the asset for replacement purposes. The current value is calculated using the method that is selected on the Calculation Method field.
  9. In the Tax section, specify this information:
    Tax Credit Table
    Select a tax credit table to use in the posting book for the asset. Use tax credit tables to define the tax credit percentages and annual tax credit recapture percentages.
    Tax Credit
    Specify the amount of the tax credit.
    First Year Expense Amount
    Specify the expense amount of the first year.
  10. Click Save.
    The Projections tab is available.