The Asset Depreciation Process form is displayed when the Depreciation process option is selected from the ASSET REGISTER menu.
The Depreciation Method applied to an asset must be one of those set up with the Depreciation methods option on the AR System Maintenance Menu. These Methods, which are represented by a one-character, numeric code, will vary with asset and company. Commonly used Depreciation Methods are as follows: Straight Line (represented by the number 1); Linear within Year (2); Reducing Balance (3), and Constant Amount (4).
The Asset Depreciation Process form displays the following fields:
Date of last depreciation
Todays Date
End of Current NL period
Period/Current Period
Year/Current Year
On the printed Depreciation Report, asset details are grouped by Asset Class, with a financial sub-total shown for those within each Class and grand total for all assets on the Register. For each asset, information is printed under the following headings:
Item Number
Description
Depreciation Method
Purchase Date
Original Cost
Old Net Book Value
Residual Value
Depreciation Amount
New Net Book Value
Tip: When using the Depreciation option for reporting purposes, you may halt the printing of the Depreciation Report at any stage by holding down the SHIFT key and pressing TAB.
Depending on how your system is set up, postings will be made to the Nominal Ledger immediately on exiting Depreciation, or on the next run of the Print all daybooks program within the Accounts system. This is typically at the end of the day.
Note: Prior to running the depreciation process for the first time after Autoline is installed, take the following precaution:
Select the System Maintenance option from the menu.
Select the depreciation methods option.
Select the relevant depreciation method(s) you are going to be using.
Click the Compile Logic button. By doing this, the methods are effectively set up for use, hence when the depreciation process is run, the figures will actually be calculated and processed.
On selecting the Depreciation process option from the Asset Register Menu, the system responds by displaying the Asset Depreciation Process screen.
This screen shows the date, the period and the year when was last run; and the current date, period and year. Also displayed is the date on which the current period will end. The system presents this screen solely for your information. You may not alter any of the details contained within the data fields of the Asset Depreciation Process screen.
BUTTONS:
On selecting either the Report-only or the Update & report buttons within the Depreciation option, the system generates a Depreciation Report.
Report Only: Previews the Net Book Value adjustments that will arise from depreciating the assets. To produce a report that shows how depreciation would alter the Net Book Value of the company's assets - but not actually to perform the depreciation. Autoline then produces the Depreciation Report, previewing the financial effects that would follow upon taking the Update and report option.
Note: When using the Asset Register module, you may at any stage select the Depreciation option and take the Report-only option to print out a preview of Net Book Value adjustments that the next depreciation run will produce. This has no effect whatsoever on the position of the Asset Register.
Update and report: Performs the depreciation and makes the relevant postings to the Nominal Ledger. To both produce the Depreciation Report and to depreciate the assets on the Register. Autoline then depreciates the assets, updates the Register and posts the resulting figures to the Nominal Ledger.When the Done button is clicked, the daybooks will be printed and the user is returned to the menu.
Help: Displays help on the current application using the default browser.
Exit: This button will cancel the process and return the user to the menu.
On the printout, the depreciated assets are grouped by Asset Class, with a financial sub-total shown for the assets within each Class. Finally, a financial grand total is calculated and shown for all assets on the Register.
For each asset, information is printed under the following headings:
Item: This is the unique, identifying four-digit Item Number of the depreciated asset within its Asset Class.
Description: The full, descriptive title of the asset, which may be up to thirty alphanumeric characters in length.
Method: The Depreciation Method used for this asset.
The Method applied, which will vary with the asset and the company, is set up with the Depreciation methods option on the AR System Maintenance Menu.
Four typical Depreciation Methods are as follows:
Straight Line
Linear within Year
Reducing Balance
Constant Amount
Purchased: The date on which the asset was acquired.
Life: This is the Lifetime of the asset, expressed in periods.
Original cost: The price paid for the asset when it was purchased.
Old Book Value:The current Net Book Value of the asset, which it will reach at the end of its Lifetime, and after which it will be depreciated no further.
Depreciation Amount: The financial amount by which the asset is depreciated in this run of the program.
New Book Value: This is the Net Book Value of the asset following this run of the program.
You may halt the printing of the Depreciation Report at any stage by holding down the SHIFT key and pressing TAB.
On using the Update & report option within Depreciation option, the system will prompt for an NL Posting Date.
Warning: It is not possible to cancel this process when you have reached this point.
The field shown will default to the last day of the current financial period; you may overwrite this displayed date with another one in a previous or future period, if required.
Autoline might, or might not, post the details of the creation or amendments to the Nominal Ledger as you exit from the option. Whether it does or not depends on the setting of the Auto-print daybooks on exit from Depreciation methods option within the System parameters option. These are located on the AR System Maintenance Menu.
Depreciation amounts will be debited to the relevant NL Charge account and credited to the associated NL Reserve account.
