Calculating Depreciation

The following depreciation information is displayed in the Asset form\Depreciation tab when depreciation is calculated for an asset:

• Depreciation Through: shows the date through which the total depreciation is calculated.

• Total Depreciation: shows the total depreciation for the asset since its in-service date.
• Current Depreciation: shows the asset’s depreciation for the current month.
• Asset Value: shows the asset value after depreciation is calculated; it is the purchase cost minus the total depreciation amount.

Depreciation Calculation Options

IntelliTrack offers different options for calculating asset depreciation:

• Depreciation may be calculated individually for the asset see "Individual Depreciation"
• Depreciation may be calculated for all assets at once or for all assets in a specific depreciation class see "Global Depreciation"

Assigning Depreciation Data

In order for depreciation to be calculated for an asset, specific information must be entered for the asset. The depreciation information that is required for each asset is entered into the Assets form at the Depreciation tab.

The system-wide depreciation information automatically entered in the Depreciation tab includes:

• Depreciation Class: depreciation class information is associated with the asset-type item that the asset is associated with.
• Depreciation Method: this information comes from the depreciation class which the asset is associated with (see "Depreciation Classes"). It is the formula used to calculate an asset’s depreciation (see "Depreciation Methods"). Depreciation methods include:
  • 200% (Double Declining) Balance
  • 150% Declining Balance
  • Straight Line
  • Sum of the Years Digits
  • Manual
• Life: the usable life of the asset is pulled from the depreciation class which the asset is tied to.
• Partial Month Convention: the partial month convention used for asset depreciation is set for the division in the Division form\Assets tab.
• Fiscal Year Ends: the end of the fiscal year is set for the division in the Division form\Assets tab. It is the Depreciation Through month from which depreciation is calculated for an asset.

In addition to the system-wide depreciation information, which is set at the division and at the asset-type item (via the depreciation class), you must also enter the asset’s:

• Purchase Date: entered in the Assets form\Warranty tab
• Purchase Cost: entered in the Assets form\Warranty tab

• In Service Date: entered in the Assets form\Depreciation tab. The In Service date determines when depreciation calculation begins.