Depreciation Code Maintenance

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Use this form to set up depreciation codes that are assigned to analysis groups and assets for calculating depreciation for an asset. The parameters assigned to each code are defaults only. You can change them at an analysis group or an asset level.

Code

Enter a unique code for the depreciation type, up to 10 characters.

Description

Enter a description of the depreciation type, up to 30 characters.

Frequency

Select how frequently Greentree Desktop calculates and expenses depreciation for an asset:

• Yearly - Depreciate for the full year, regardless of the period the asset is purchased in.
• Half-Yearly - Depreciate for either the whole year (if the asset was purchased in the first half of the year) or for half a year (if the asset was purchased in the second half of the year). The Mid Year Date on the Fixed Assets Module Control form is the calculation point.
• Daily - Depreciate daily for the number of days remaining in the month of purchase.
• Periodic - Depreciate for a full month.

The asset calendar assigned in Fixed Assets Module Control determines the calculation points.

Method

Select either a Diminishing, Straight Line or Immediate method, depending on the kind of depreciation you are setting up.

Note: You can also select None and if the depreciation code is assigned to an asset, the asset is not be included in the depreciation calculation. Immediate depreciates the entire closing book value of the asset in the next depreciation run.

Rate

Enter the default rate of depreciation to apply to assets with this depreciation code assigned. If this field is blank, Greentree Desktop calculates the depreciation based on expected life and residual value.

Note: The Straight Line method of depreciation always uses the life and residual values if they are entered. If they are not entered, the rate is used. For Diminishing Value methods, you must always enter a rate.

Life

Enter the default life expectancy of the asset in years. This determines a depreciation rate for straight line methods. Leave this field empty if not all assets with this depreciation code are expected to have the same life.

First Year %

If an asset should be depreciated at a higher rate in the first year, enter the default first year rate here.

Private Use %

If an asset is for private use as well as business use, enter a default private usage percentage for this depreciation code. When Greentree Desktop calculates depreciation for an asset with this code assigned, the calculation is using the business percentage used (100% less the Private Use %).

Cost Limit

Enter a cost limit to cap the value by which an asset with this code assigned is depreciated. For example, if an asset is purchased for $100,000, and a value of $70,000 is entered here, Greentree Desktop only calculates depreciation to a value of $70,000.

• Analysis Groups
• Assets
• Fixed Assets Module Control

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