Use this tab to enter depreciation information for an asset item for any additional books that you set up for calculating depreciation or amortization differently than the way depreciation is calculated for your general ledger (GL book).
You can use additional books for calculating depreciation for tax purposes, based on the United States Internal Revenue Service (IRS) depreciation guidelines. The depreciation and amortization from additional books is not posted to your general ledger.
The Additional Books tab:
- Displays only if you have activated the Asset Management application.
- Is enabled only if the
equipment item is an asset item, which means that it was created from a purchasing item with a category type of Capital Items. The item category type displays in the
Type field on the General tab of the
Equipment form.
Some of the fields on the Additional Books tab initially prefill from entries made on the GL Book tab and the GL Cost tab.
Contents
Book Grid
This grid at the top of the Additional Books tab displays a row for each additional book that you set up on the Additional Books tab in
. Select a row in the grid, and then enter information for the book in the fields below the grid. The fields below the grid display the information for the book that you currently have selected in the grid.
Book Grid Fields
| Field | Description |
|---|
| Book
|
This field prefills with the name of the additional book that is entered in Asset Management Settings.
|
| Asset Type
|
This field prefills with the asset type for the asset item that is entered on the GL Books tab. You cannot change the prefilled entry. An asset type allows for prefilling of some data for an asset item, such as property type and depreciation method. An example of an asset type is "Office Furniture."
You set up asset types on the Asset Type tab in
.
|
| Property Type
|
This field prefills with the property type that is associated with the asset type entered for the asset item on the GL Books tab. You cannot change the prefilled entry. Property type is for informational purposes.
Each asset type that you set up on the Asset Type tab in
has a property type specified for it.
|
| Method
|
This field prefills with
Straight-line, which you can change as needed. The method determines how depreciation or amortization is calculated for the asset item.
|
| Useful Life
|
This field prefills with the number of years of useful life for the asset item, based on the number of years specified in Asset Management Settings for the method that you entered in the
Method field on this tab. You can change the number of years in this field only if you entered
Straight-line in the
Method field.
|
| Acquisition Date
|
This field prefills from the entry in the
Acquisition Date field on the GL Books tab, which you can change as needed. This is the date that you acquired the asset item.
|
| In Service Date
|
This field prefills from the entry in the
In Service Date field on the GL Books tab, which you can change as needed. This date determines the period in which the depreciation calculation starts for the asset item. A full month of depreciation is calculated for a period, regardless of the day within the period that you specified as the in-service date.
|
Cost Section
The information in this section applies for the additional book that you currently have selected in the Book grid above this section. Select a row in the Book grid, and then complete the information in the Cost section for that book. This information is used to calculate the depreciation basis for the asset item.
| Field | Description |
|---|
| Total Acquisition Cost
|
This field prefills with the amount in the
Total Acquisition Cost field on the GL Cost tab, which you cannot change. This is the total acquisition cost of the asset item, for depreciation purposes.
|
| Business Use Percentage
|
This field prefills with the amount in the
Business Use Percentage field on the GL Cost tab. You can change the prefilled percentage as needed. This is the percentage of the asset item's acquisition costs that is allocated for business use for depreciation purposes.
|
| Additional Cost
|
Use this field to enter any additional costs for the asset item, such as adjustments to the tax basis for future tax initiatives.
|
| Less Salvage Value
|
This field prefills with the amount in the
Less Salvage Value field on the GL Cost tab. You can change the prefilled amount as needed. Use this field to enter the estimated monetary amount that you expect to receive when you sell the asset item at the end of its useful life.
|
| Less Additional First Year Depreciation
|
This field prefills with the amount in the
Less Additional First Year Depreciation field on the GL Cost tab. You can change the prefilled amount as needed. Enter an additional amount of depreciation that you plan to take during the first year of depreciation.
|
| Less Section 179 Deductions
|
This field displays if you selected the
179 check box in the grid on the Additional Books tab in
.
In this field, enter the section 179 deduction amount for the asset item. The 179 deduction is set by the United States government and allows businesses to deduct the purchase price of assets that are leased or purchased during the tax year. Your
firm can elect to use the section 179 deduction instead of recovering the cost by taking depreciation deductions.
You cannot enter an amount in the
Less Section 179 Deductions field that exceeds the section 179 deduction limit for the tax year that is entered on the Section 179 tab in
.
|
| Depreciation Basis
|
This field prefills with the amount in the
Depreciation Basis field on the GL Cost tab. You can change the prefilled amount as needed. The depreciation basis determines how much of the asset item's cost you will write off each year.
The calculation is:
(Total Acquisition Cost x Business Use Percentage) + Additional Cost - Salvage Value - First Year Depreciation - Section 179 Deductions
|
| Comments
|
Enter any notes and comments about the asset item's acquisition costs and depreciation.
|
