Depreciation Book

OBJECTIVE

The Depreciation Book function is used to define the assets to be depreciated. The calculation options are used to generate the depreciation accounting entries for these assets.

The assets to be depreciated can already be defined in the system or other assets.

 

PREREQUISITEs

• Project Management
• Define Depreciation Categories
• Define Depreciation Groups
• Define Status Codes
• Define Depreciation Rates

 

Steps

maestro* > Accounting > Financial Management > Depreciation > Depreciation Book

 

Create a depreciation transaction

1. Enter the required information:

Field	Description
Type	Available values: Equipment Must be linked to an Equipment project. Other Other type of asset can be buildings, equipment not used on projects, etc. In this case, it is not necessary to link the asset to a project.
Number	Number of the depreciable asset.
Description	Description that identifies the asset.
Status	Status: Active or Inactive.
Purch Date	Date of purchase.
Year	Year of the asset.
Acquisition Cost	Acquisition cost.
Model	Model of the asset.
Serial Number	Serial number.
Available Years	Financial years available for calculating the depreciation.
Status	Status of the financial year.

2. Enter the required information in the Fixed Assets tab:

1. Details section:

Field	Description
Calc Code	Code that identifies the calculation method of the depreciation to be applied to the asset. NOTE: The code is from Define Depreciation Rates.
Category	Depreciation category from Define Depreciation Categories.
Group	Depreciation group from Define Depreciation Groups.
Status	Depreciation status from Define Status Codes.

2. Declining Balance Depreciation, Straight-Line Depreciation or Hourly Depreciation section:

The fields available vary based on the Calc Code selected.

Declining Balance Depreciation

Field	Description
No. years Depreciation Rate	Displays the rate if Calc Code is declining balance. Displays the number of years to depreciate if Calc Code is linear.
Maximum Percentage	Displays the maximum percentage to depreciate if Calc Code selected is linear or declining balance.
Active periods selection	Months on which depreciation is calculated. NOTE: Applies to linear or declining balance method.
Reactivate all periods next year	Calculates depreciation spread over the 12 periods of the following year, if the box is checked. NOTE: Applies to linear or declining balance method. NOTE: This field is invisible if all periods are checked.
Method for calculating the depreciation for this incomplete year	Available values: On the entire year The depreciation is calculated on the entire year. It is spread over the checked periods. The amount is higher for each period, but the total for the year remains the same. On active periods: The depreciation is only calculated on checked periods. The amount remains the same for each period, but the total for the year is lower. On active periods (linear) Only applies if the linear method is used to depreciate the equipment. On active periods (all) Applies to all unit types and calculates depreciation only on active periods. NOTE: This field is invisible if all periods are checked.

Hourly depreciation:

Field	Description
Value	Value of the asset.
Residual	Residual value deducted from the value.
Net	Value – Residual.
Number of hours anticipated	Number of hours representing the period of time the asset will be used.
Hourly Dep. Rate	Net / Number of hours anticipated.
Year Hours	Hours worked by the equipment during the year.
Hours to date	Hours worked by the equipment since it was created.

The hours are compiled during the Monthly Depreciation Calculation and are from the hours in the EnterProduction option.

3. Fixed Asset section:

Field	Description
Opening Balance	Updated at the beginning of every year and used for the annual depreciation calculation to be spread over the available periods and adjusted or non-adjusted amounts. NOTE: The balance must be specified for the first year of depreciation.
Current Year Additions	Amount of acquisitions made during the year that increase the value of the asset to be depreciated.
Current Year Disposals	Amount of disposals made during the year that decrease the value of the asset to be depreciated. To ensure that the system can automatically calculate the profit and loss on the final disposal of property, complete the following fields: Date Enter the date of the final disposal of property. Amount Post the amount entered in the Closing Balance field in the Fixed Assets section. Depreciation Post the amount entered in the Closing Balance field in the Depreciation section.
Closing Balance	Balance of the amount to be depreciated on the equipment at the end of the year. NOTE: The balance is calculated based on the balance at the beginning of the year versus the acquisitions and disposals made during the year.

4. Depreciation section:

Field	Description
Opening Balance	Balance of the amount depreciated on the asset at the beginning of the year. NOTE: This amount should be zero the first year unless the asset is not entered into the system during the year and has already been depreciated. NOTE: For following years, the system enters the amount automatically during the annual depreciation calculation.
Total Depreciation on Additions	Total depreciation amount on acquisitions. NOTE: This amount is not depreciated. It corresponds to the total amounts entered in the Depreciation column of the Current Year Additions table.
Depreciation for this Year	Anticipated depreciation based on the depreciation type selected. NOTE: This amount is adjusted during each monthly calculation. NOTE: The […] icon is used to enter manual adjustments.
Remaining Periods to Depreciate	Number of remaining periods to be depreciated. NOTE: This amount is adjusted during each monthly calculation.
Depreciation Amount by Period	Depreciation to be applied during the year, divided by the number of remaining periods to be depreciated.
Total Depreciation on Disposals	Total depreciation amount on disposals. NOTE: This amount decreases the value of disposals and thereby decreases the closing balance. NOTE: This amount corresponds to the total amounts entered in the Depreciation column of the Current Year Disposals table.
Closing Balance	Balance of the amount to be depreciated on the asset at the end of the year.
Net Book Value	Net value of the equipment. NOTE: The net book value is increased by acquisitions and decreased by disposals.
Disposal Date	Date of the final disposal of the asset.
Disposal Amount	Sale amount for the asset.
Profit or Loss on Disposal	Amount of profit or loss on disposal. NOTE: Complete the Current Year Disposals table so that the system can calculate the profit or loss on disposal.

5. Current Year's Depreciation section: This table displays the amounts calculated for each period.

3. Enter the required information in the Allocation tab:

You may only select one allocation type: project or general ledger. Maestro* enters the default values from the Group or Category. If no value is entered, the fields must be completed manually.

1. Project section:

Field	Description
Expense	Available values: Project Projects linked to the expense. Project in which the expenses are accumulated. Activity Activity in which depreciation expenses are grouped. Group Group in which depreciation expenses are grouped.
Accumulated Depreciation	Available values: Project Projects linked to the accumulated depreciation. Balance sheet. Activity Activity in which accumulated depreciation is grouped. Group Group in which accumulated depreciation is grouped.

2. General Ledger section:

Field	Description
Expense	General ledger account for depreciation expenses. Expense account.
Accumulated Depreciation	General ledger account for accumulated depreciation; Asset account.

4. Click Save.

 

See also

• Project-to-Project Transfer
• Monthly Depreciation Calculation
• Yearly Depreciation Calculation
• Enter Production

 

Last modification: November 12, 2024