GL Book Tab of the Equipment Form

Use this tab to enter depreciation or amortization information for an asset item.

This information is used for calculating depreciation for an asset item when you run Depreciation Processing in the Asset Management application. The information on the GL Book tab applies for your company's general ledger or "GL book," which is based on Generally Accepted Accounting Principles (GAAP) for your company's financial statements.

Use the Additional Book tab if you need to set up and enter one or more additional depreciation books for calculating depreciation or amortization differently than the way it is calculated for your general ledger.

The GL Book tab:

  • Displays only if you have the Asset Management application activated.
  • Is enabled only if the equipment item is an asset item, which means that it was created from a purchasing item whose category type is Capital Items. The item category type displays in the Type field on the General tab of the Equipment form.

Contents

Asset Classification Section

Field Description
Calculation Use the drop-down list in this field to select the accounting process to use for the asset item.

Options are:

  • Depreciation: Select this option for asset items that you want to depreciate that are not capital leases.
  • Prepaid: Select this option for prepaid asset items that will be amortized instead of depreciated, such as pre-paid insurance. When you select Prepaid, the Method field on this tab prefills with Straight-line.
  • Lease: Select this option for leased asset items that will be amortized instead of depreciated. The Method field on this tab prefills with Straight-line. Complete the information in the Lease Details section on this tab.

The fields in the GL Accounts section on this tab change appropriately, based on what you select in the Calculation field.

Asset Type The items in the drop-down list in this field display only after you enter a project for the asset item on the General tab of the Equipment form.

From the drop-down list in this field, select the asset type for the asset item. An example of an asset type is "Office Furniture." The asset types that display in the drop-down list are entered on the Asset Type tab in Settings > Accounting > Asset Management (with the In Use check box selected).

The asset type that you enter can determine what prefills in the following fields on the GL Book tab, based on the default entries that were made for the asset type in Asset Management Settings:

  • Property Type
  • Method
  • Useful Life in Years
  • Accumulated Depreciation GL Account
  • Depreciation Expense GL Account

What you enter in the Calculation field also determines whether these fields prefill and whether you can change the prefilled entries in these fields. For example, if you selected Lease in the Calculation field, you cannot change the prefilled entry in the Method field, and the Useful Life in Years field does not apply for leases.

Property Type This field prefills with the property type for the asset item, based on the asset type that you entered in the Asset Type field. You can change the prefilled entry as needed. Property type is for informational purposes.

Each asset type has a property type specified for it on the Asset Type tab in Settings > Accounting > Asset Management.

Method The method entered in this field determines how the asset item's depreciation or amortization is calculated.

This field prefills as follows, based on what you enter in the Calculation field:

Entry in the Calculation Field Method that Prefills in the Method Field
Depreciation The Method field prefills, based on the asset type that you enter in the Asset Type field. From the drop-down list in the Method field, you can select a different method for the asset item.

Each asset type has a depreciation method entered for it on the Asset Type tab in Settings > Accounting > Asset Management. Depreciation methods are entered on the Methods tab in Settings > Accounting > Asset Management.

Prepaid Straight-line, which you cannot change
Lease Straight-line, which you cannot change
Improvement Type Use this field and the Improved Asset field if the current asset item that you have open and displayed on the Equipment form has been used to improve another asset item (for example, to repair another asset item). These fields allow you to associate the two asset items so that you can see the association listed on the Equipment Summary report in Reporting > Equipment. Each of the asset items will be depreciated separately.

In the Improvement Type field, enter the type (classification) of the additional improvement expenditure. The items that display in the Improvement Type drop-down list are entered on the Improvements tab in Settings > Accounting > Asset Management with the In Use check box selected.

When you select a classification other than <None> in the Improvement Type field, the Improved Asset field in the Asset Classification section is enabled. In the Improved Asset field, you enter the asset item that was enhanced by the asset item that is currently displayed on the Equipment form.

Example: You bought a truck, and later you attached a winch to it. You entered asset item A in period 1 for the truck and asset item B in period 6 for the winch. In the Equipment hub, you open asset item B (winch), select Betterment in the Improvement Type field, and enter asset item A (truck) in the Improved Asset field.

If you instead want to add additional costs for the current asset item that will be included in the current asset item's depreciation basis for calculating depreciation, you can do either of the following:

  • Enter a line item on an AP voucher in Transaction Entry and associate it with the current asset item. When you post the voucher, this line item is added to the Acquisition Cost grid on the GL Cost tab in the Equipment hub.
  • Enter an Insert type additional cost in the Acquisition Cost grid on the GL Cost tab of the Equipment hub. Do this only if you already recorded the cost for the insert in your general ledger.
Asset Status From the drop-down list in this field, select the status of the asset item.
  • Active: Select this status if the asset item is currently in use at your company and you will depreciate it. You must select this option in order to run depreciation for the asset item in Asset Management > Depreciation Processing.
  • Inactive: Select this status for an asset item that is accumulating costs, but which has not yet been placed into service. You cannot run depreciation for an inactive asset item in Asset Management > Depreciation Processing. When you unpost an asset item that was disposed, the Asset Status field automatically changes from Disposed to Inactive.
  • Disposed: When you dispose of an asset item in Asset Management > Disposal Processing, the Asset Status field prefills with Disposed. A status of disposed indicates that you removed an asset item from your general ledger books because you sold or scrapped the item. The only way to change this status is to undo the transaction posting for the disposal in Utilities > Advanced Utilities > Undo Posting. When you undo the disposal posting, the Asset Status field for an asset item automatically changes from Disposed to Inactive. You can change the status from Inactive back to Active.
Acquisition Date Enter the date that you acquired the asset item. This date is for informational purposes.
In Service Date This field applies only if you selected Depreciate or Prepaid in the Calculation field on this tab.

Enter the date that you acquired the asset item. This date determines the period in which the depreciation calculation starts for the asset item. DPS calculates a full month of depreciation for the period, regardless of the day within the period that you specified as the in-service date.

Disposal Date When you dispose of an asset item in Asset Management > Disposal Processing, the date that you entered in the Disposal Date field on the Disposal Processing form prefills in this field. You can change the prefilled date.
Useful Life in Years This field does not apply when you select Lease in the Calculation field.

The number of years of useful life determines how many periods in total are used in the depreciation calculation for the asset item.

This field prefills with the number of years of useful life for the asset item, based on the asset type that you entered for the asset item in the Asset Type field. You enter the useful life in years for an asset type on the Asset Type tab in Settings > Accounting > Asset Management. You can change the prefilled years in the Useful Life in Years field only if the depreciation method in the Method field is Straight-line.

When you change the useful life in years after depreciation has been calculated for an asset item, you must also clear the Life of Asset check box for at least one cost row (any row) in the Acquisition Cost grid on the GL Cost tab.

For asset items that are leases, (Lease is entered in the Calculation field), the lease start and end dates that you enter determine the number of periods for processing amortization for the lease.

Improved Asset This field is enabled only if you selected a type other than <None> in the Improvement Type field on this tab.

Click the Find icon beside the Improved Asset field. On the Equipment lookup, select an asset item that was enhanced by the current asset item that you have open and displayed on the Equipment form.

The two asset items are each depreciated separately, but by associating them here, you will be able to see the association between the two listed on the Equipment Summary report in Reporting > Equipment.

Example: You bought a truck, and later you attached a winch to it. You entered asset item A in period 1 for the truck and asset item B in period 6 for the winch. In the Equipment hub, you open asset item B (winch), select Betterment in the Improvement Type field and enter asset item A (truck) in the Improved Asset field.

If instead, you want to add additional costs for the current asset item that will be included in the current asset item's depreciation basis for calculating depreciation, you can do either of the following:

  • Enter a line item for an AP voucher in Transaction Entry and associate it with the current asset item. When you post the voucher, the line item is added to the Acquisition Cost grid on the GL Cost tab in the Equipment hub.
  • Enter an Insert type additional cost in the Acquisition Cost grid on the GL Cost tab of the Equipment hub. Do this only if you have already recorded the cost for the insert in your general ledger.

GL Accounts Section

The name of the fields in this section differ, depending on what you select in the Calculation field on this tab.

Field Description
First Field in the GL Accounts Section: Accumulated Depreciation, Prepaid, or Accumulated Amortization
Entry in the Calculation Field Name of This Field
Depreciation Accumulated Depreciation
Prepaid Prepaid
Lease Accumulated Amortization

This is the asset account that will be used when you process depreciation in Asset Management > Depreciation Processing for the asset item.

This field prefills, based on the asset type that you entered for the asset item in the Asset Type field on this tab. It prefills with the account entered in the Accumulated Depreciation Account field for an asset type on the Asset Type tab in Settings > Accounting > Asset Management. Click the Find icon beside the Accumulated Depreciation, Prepaid, or Accumulated Amortization field to open the Account lookup and select a different account. The name of the account that you select displays to the right of the field.

Second Field in the GL Accounts Section: Depreciation Expense, Prepaid Expense, or Amortization Expense
Entry in the Calculation Field Name of This Field
Depreciation Depreciation Expense
Prepaid Prepaid Expense
Lease Amortization Expense

This is the indirect account or other expense account that will be used when you process depreciation in Asset Management > Depreciation Process for the asset item.

This field prefills based on the asset type that you entered for the asset item in the Asset Type field on this tab. It prefills with the account entered in the Depreciation Expense Account field for an asset type on the Asset Type tab in Settings > Accounting > Asset Management. Click the Find icon beside the Depreciation Expense, Prepaid Expense, or Amortization Expense field to open the Account lookup and select a different account. The name of the account that you select displays to the right of the field.

Lease Details Section

This section is enabled when you select Lease in the Calculation field on this tab.

Field Description
Lease Start Date and Lease End Date Enter the start date and end date of the lease in these two fields. These dates determine the number of periods to amortize the lease and the period in which to start processing amortization when you run depreciation processing.

Example: You enter a lease start date of January 15, 2016 and a lease end date of January 14, 2017. Amortization will be calculated for 12 periods, starting in the period that begins after February 14, 2016.

If you change the date in these fields after depreciation has been run for an asset item, you receive the following warning: Warning: Depreciation has already been run on this item. Changing the Lease Start Date will impact future depreciation amounts.

Lease Vendor Click and select the lease vendor for the asset item on the Vendor lookup. This is for informational purposes.
Lease Contact Click and select the name of the vendor contact for the lease on the Contact lookup. This is for informational purposes.

Unit Association Grid

Use this grid to associate a unit with an asset item. Then, on the Unit tab in Asset Management > Asset Review, you can track and view the unit-generated billing value that is associated with the asset item.

The units that you associate with asset items are set up in Hubs > Units in the desktop application. You enter transactions that record unit-generated billing values in Transaction Center > Transaction Entry (select Units or Units by Project in the Transaction Type field on the Transaction Entry form). You can also enter units on timesheets.

You can associate one or more units with an asset item in this grid. A specific unit can be assigned only to one asset item.

Grid Toolbar

Field Description
Unit Association Drop-Down

Click the drop-down arrow on a grid header to complete any of the following actions:

  • To print grid data, click Print. On the Print Preview form, click File > Print to send the grid data to your default printer.
  • To export grid data to an Excel spreadsheet, click Export to Excel. When Microsoft Excel opens, use its features to modify, print, or email the grid data, or to save the spreadsheet file locally.
  • To turn on grouping for a grid, click Enable Grouping. When a field displays with the instruction: "Drag a column header here to group by that column," drag and drop column headers into the field, in the sequence that you want them to display.

Not all options are available on all grids.

Insert Click this option to associate a unit with the asset item. The Unit lookup opens and you select one or more units to associate with the asset item.
Delete In the grid, select a unit that you want to remove from being associated with the asset item, and then click this option.

A specific unit can be assigned only to one asset. You must delete the association between a unit and an asset item if you want to associate the unit with a different asset item.

Grid Fields

Field Description
Unit Number This field prefills with the unit number (from the Units hub in the desktop application) of the unit that you selected.
Unit Table This field prefills with the unit table (from the Units hub in the desktop application) of the unit that you selected.
Description This field prefills with the description (from the Units hub in the desktop application) of the unit that you selected.