Forecast Depreciation Table

This form works with the Forecast Assets form and the Forecast Depreciation process to assign depreciation methods to asset analysis groups to run depreciation calculation simulations over future years. Examples of where this may apply include:

The government changes depreciation rates for a certain group of assets (for example, motor vehicles) and you want to run a future simulation on how this will affect your depreciation expenses and future asset book values.
You plan to purchase a group of new assets next year and want to understand the impact of this in terms of the future depreciation expense.

If the FA Module Control option Tax and Accounting the same is not selected, you can enter both tax and accounting details. Otherwise, there is only one form to enter information into.

You assign depreciation details at an analysis group level. When the forecasted depreciation runs, the analysis group assigned to each asset set up in the Forecast Assets form is the basis for applying the depreciation method to that asset.

You can enter forecast depreciation methods or details for the current year, next year, and the year after that. The Default rates relate to the current depreciation defaults set up for the analysis group in Analysis Group Maintenance. These default in read-only format when the analysis group is selected.

Information

When you change the default parameters on the Analysis Group Maintenance form, select the Update forecast depreciation table option to update this form with the analysis group's new depreciation parameters.

Enter the revised details into the Revised forecast section to change the depreciation parameters for a specific group, for any of the current, next, or following years. When the forecast runs using the Forecast Depreciation process, Greentree uses these depreciation parameters.

Ignore asset rate

Select this option to use the revised forecast parameters. The asset-specific parameters are ignored. If this option is not selected, the depreciation parameters of the asset in Asset Maintenance are used in the forecast calculations. If you select this option and the revised forecast parameters are not entered, the calculations treat the Ignore asset rate as not selected.

When you've set up these parameters, the Forecast Depreciation process runs the forecast.