Books (AM20.4)
Use Books (AM20.4) to assign depreciation books and depreciation parameters to a new asset, or to modify book assignments for existing assets. Any books defined as required on Current Calendar (AM01.1) display automatically on this form. You can associate an unlimited number of books to an asset.
Process at a Glance
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Define asset header and detail information using AM20.2.
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Define asset item information using AM20.3.
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(This step) Assign asset books using AM20.4.
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Access, change, or delete system-prompted journal entries on AM20.5.
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(Optional) Verify assets using AM220 and modify as needed using steps 1 though 4.
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Release assets in batch (using AM170) or individually (using AM20.2, AM20.3, or AM20.4).
Processing Effect
Many of the fields on this form are defaulted from other forms. You can accept them as is or modify them.
If you create an asset in a period later than the period when the asset was placed in service, you can use the Compute Option field to define how to distribute the catch-up depreciation. You can spread the whole year's depreciation over the remaining periods in the current year (Compute Option = No) or you can spread the depreciation over the entire year, and charge the entire catch-up depreciation amount to the current period (Compute option = Yes).
If you are adjusting an existing asset, you can use the Compute Option field to define how to distribute the adjusted depreciation amounts. Besides the two previous options, you have one additional compute option: You can spread the catch-up adjustments amounts over the remaining life of the asset (Compute Option = Prospective).
You can assign a different in-service date and compute option to each book that the asset uses.
The depreciable basis defaults from the total item cost. The in-service date defaults from the item purchase date. If multiple items with different purchase dates are entered, the latest purchase date defaults. The in-service convention defaults from the book definition (defined in AM00.1). All default information can be overridden.
More Information
You can use the detail tabs to enter optional information specific to a book. Select the Depreciation detail tab to enter year-to-date and life-to-date depreciation amounts, and to override the asset compute option. Select the Depreciation Option detail tab to indicate the depreciation method used if business use falls below a specified percentage. Select the Insurance and Replacement detail tabs to specify the method used to calculate insurance and replacement values. And select the Tax option detail tab to enter tax credit information.