Use the Depreciation option to preview and perform depreciation calculations on the assets of the Asset Register, in order to report a true picture of the asset's worth. The method of depreciation applied to each asset - such as Straight Line, Reducing Balance etc - is set up with the Depreciation methods option on the AR System Maintenance Menu.
This option enables you to preview the effect on the company's assets of the next depreciation run. It also allows you to perform actual depreciation, updating the Asset Register with the new figures and making the appropriate postings to the Nominal Ledger.
Assets, by their nature, depreciate. Over time they lose part of their value as a result of wear and tear, consumption, obsolescence or of other factors that act to reduce their worth to the company.
The Depreciation option on the Asset Register Menu enables you to calculate the depreciation on a company's assets, according to the relevant, pre-defined method; to update the Asset Register with the new figures; and to make the appropriate postings to the Nominal Ledger.
You may also use the Depreciation option solely for reporting purposes. In other words you may select the Report-only option within the program to print out a preview of how the next depreciation run will affect the position of the Asset Register.
The depreciation details that the system uses in its calculations are held on page two, three and four of every Asset Record, the Asset Valuation, Tax and Management tabs.On acquiring an asset, you use the Add or modify assets option to input the Date Purchased, Lifetime, Depreciation Method, Net Book Value, Residual Value and, if applicable, the Fixed Depreciation Amount details to this page. After each depreciation run, the system will update the Last Depreciation Amount and YTD Depreciation data fields.
To access Depreciating assets:
From the Autoline Master menu, select the Asset register option an the company you require.
Select the Depreciation process option.
The Asset Depreciation Process form is displayed.
