Depreciation Classes

The depreciation class contains the information used to calculate the asset depreciation over its useful life. A depreciation class is linked to an asset-type item and the information contained in the class is used to calculate the depreciation for the assets associated with this item. To set up a depreciation class, we recommend that you group the capital assets used by your organization into categories and set up depreciation classes based upon them. Examples of depreciation classes include:

• Computers
• Furniture
• Machinery
• Software
• Vehicles

A depreciation class is added to IntelliTrack from the Depreciation Classes page.

When you add a depreciation class and set up its definitions, you are defining the parameters that IntelliTrack Assets uses to calculate depreciation for any asset linked to this class.

Each class is assigned the following:

• Depreciation method
• Depreciation period
• Useful life of the asset

Filter Options

You are able to filter inventory by column in the grid for columns that contain a Header Filter; see "Filtering Page Data" for information on using the filter row.

Depreciation Method

The way an asset’s depreciation is calculated is based on the depreciation method. Each Deprecation Class must specify a depreciation method. IntelliTrack Assets supports the four most commonly accepted depreciation methods used in accounting; see "Depreciation Methods". The asset depreciation methods used in IntelliTrack Assets include:

• Straightline: use this method to calculate a constant depreciation value per year, which results in an equal depreciation each year for the product’s life.
• 150% Declining Balance: use this method to calculate a constant depreciation rate of 150 percent declining balance per year, which results in an accelerated depreciation in the earlier years of a product’s life.
• 200% (Double) Declining Balance: use this method to calculate a constant depreciation rate of 200 per cent declining balance per year, which results in an accelerated depreciation in the earlier years of a product’s life.
• Sum-of-Years Digits: use this method to calculate an asset’s depreciation over an amount of years, which results in an accelerated depreciation in the earlier years of a product’s life. (The acceleration is less than with declining balance because the depreciation is based on the sum of the estimated years of your asset’s life and a percentage of the total years and current usage.)
• Manual: Asset depreciation is not calculated for assets assigned to the manual method. Instead, the depreciation is calculated separately and entered into IntelliTrack Assets. This gives you the ability to exclude certain assets from automatic depreciation calculation if they don’t fit the standard asset mold.

Depreciation Period

Each depreciation class must have a specified period.

• Annual: Depreciation is calculated through the end of the fiscal year.
• Monthly: Depreciation is calculated through the end of the current month.

Useful Life of the Asset

Specify the useful life of the asset assigned to this depreciation class. The life may be specified in years and months or in months. When an asset reaches the end of its useful life, its value is zero or its salvage value. Depreciation will be calculated for an asset until it reaches the end of its useful life.

Adding a Depreciation Class

Please refer to the steps below to add a depreciation class to IntelliTrack Assets.

1. From the navigation pane, select Assets > Depreciation Classes. The Depreciation Classes page appears.
2. Select the Add button found along the top of the page’s grid.
3. The Add Depreciation Class form appears.

4. Name field (required): Enter a name for this depreciation class.
5. Description field (optional): Enter a description for this depreciation class, if desired.
6. Depreciation Method: Click the drop-down arrow and select the calculation method for this depreciation class from the list that appears.
   1. Manual: depreciation is calculated manually and entered into the asset’s record by the user.
   2. Straight Line: depreciation for the assets in this class is automatically calculated using the Straight Line formula: (cost - salvage value) / (life)
   3. 150% Declining Balance: depreciation for the assets in this class is automatically calculated using the 150% Declining Balance formula: ([(cost - total depreciation from prior periods) * 1.5] /(life)
   4. 200% Declining Balance: depreciation for the assets in this class is automatically calculated using the 200% Declining Balance formula: [(cost - total depreciation from prior periods) * 2] / (life)
   5. Sum of the Year Digits: depreciation for the assets in this class is calculated using the Sum of the Year Digits (SYD): [(cost - salvage value) * (life - period + 1) * 2] / (life)(life + 1)
7. Depreciation Period: Select how often depreciation is calculated.
   1. Monthly: select this option to calculate depreciation based on a monthly period.
   2. Annual: select this option to calculate depreciation based on an annual period.
8. Life: The life represents how long the asset is useful after which the asset’s value is zero or its salvage value. Enter the number of years and/or months over which the asset’s cost is depreciated.
   1. When Monthly is selected as the depreciation period, enter the asset’s useful life in months.
   2. When Annual is selected as the depreciation period, enter the asset’s useful life in years or years and months.
9. Save icon: press the Save icon to close this form and save this depreciation class to the system. You are returned to the Depreciation Classes page; this class appears in page’s grid. This class may be assigned to an asset-type item and it may be applied to an asset. The class information will be applied to the asset when calculating its depreciation.
   1. Cancel icon: if you do not want to save this depreciation class to the system, press the Cancel icon to close this form and cancel adding this depreciation class to the system.
10. A depreciation class is associated with an asset-type item at the Item form via the Depreciation Class field see "Associating a Depreciation Class with an Asset").

Editing a Depreciation Class

You may edit any field in a depreciation class; however, be aware that changing the depreciation method or the useful life of the asset will alter any future depreciation calculated for an asset assigned to this class. To edit a depreciation class, refer to the steps below.

1. From the navigation pane select Assets > Depreciation Classes.
2. The Depreciation Classes page appears.
3. Find the depreciation class that you want to edit.
4. Select the Edit button to the right of this asset.
5. The Edit Depreciation form appears for this depreciation class. You may edit any field in this form.
6. Name field: change the name of this class in this field, if desired.
7. Description field: change the description for this depreciation class, if desired.
8. Depreciation Method: click the drop-down arrow in this field and change the depreciation method for this class, if desired.
9. Depreciation Period: to change the depreciation period, select the radio option: Monthly or Annual.
10. Life: change the useful life for this asset class by entering it in this field, if desired.
11. Save icon: Press the Save icon to close the form and save the changes to this class.
    1. Cancel icon: Press the Cancel icon to close the form and cancel saving the changes to this class.

Deleting a Depreciation Class

When a depreciation class is not being used, it may be deleted. If a depreciation class is not assigned to an asset-type item, you may delete it from the system. To delete a depreciation class, refer to the steps below.

1. From the navigation pane, select Assets > Depreciation Classes.
2. The Depreciation Classes page appears.
3. Find the depreciation class that you want to delete.
4. Select the Delete button.
5. The following prompt appears: Delete depreciation classes?.
6. To delete the class, select OK.
   1. (To cancel deleting the class, select Cancel.)
7. If the depreciation class is not being used by an asset-type item, you are returned to the Depreciation Classes page. It is removed from the list.
8. If the deprecation class is being used by an asset-type item, a prompt appears to notify the user that the class is in use and cannot be deleted. When the user presses OK to close the prompt, the user is returned to the Depreciation Classes page; the class remains in the list.