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For example, suppose you increase the original cost of a depreciating asset by adding an additional acquisition. A computer with an original cost of $1000 is being depreciated over a period of 8 years. After 4 years, $400 of additional memory is added via an additional acquisition updating the original cost to $1400. For the first 4 years, the computer depreciated $125/year for a total of $500 (one half of its useful life). But since its value has just been increased by $400, the current book value is $900, which will be depreciated over the remaining 4 years. After the upgrade, the next 4 years, it will depreciate at $225/year until it's fully depreciated. However, if 'Depreciate' were run on this item after the additional acquisition, the life-to-date depreciation would be re-calculated over the entire life of the item using the new original cost ($1400/8 years) depreciating at $175/year. The historical 'true' depreciation will no longer exist when using 'depreciate' to re-calculate LTD depreciation.
Item Depreciation Adjustments
In order to edit an item's existing LTD depreciation to a specific value, you may create a 'Depreciation Transaction'.
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Depreciation Adjustments can only be created for active items that have not been fully depreciated. You can only create, modify or delete an adjustment for the current fiscal year. |
- Query the item and select 'Edit'.
- Under Depreciation Transactions, click
. The Fiscal Year will default to the open period that is marked current. The default 'type is Adjustment - Optionally enter a description for the depreciation adjustment.
- Enter the amount of the depreciation adjustment. You can enter a positive or negative The amount entered will be added (or subtracted) to the existing LTD Depreciation amount.
- Click
to complete the transaction.
Split Item
icon is available when viewing an item record. It allows you to split a lot item into multiple items. A lot is defined as a collection of like items which are recorded on the inventory file with a single tag number, but with a value greater than one in the "number of items" field on the item record. Split is very useful in splitting a purchase order lot into multiple tag items on the inventory file. It is also useful in situations where part of a lot is to be disposed of or moved to a different location.
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