[EM] Equipment Setting Up Depreciation

SETTING UP DEPRECIATION

1.  This only gets set up if the EM asset is over $2500 and will be capitalized.

2.  Go to EM/Programs/EM Asset Setup.

3.  The equipment number is the number you set up when originally setting up this asset in EM Equipment.  

The Asset is the same number. Enter the same description that you did for the EM Equipment. Enter purchase pg).

For GAAP, we usually don't have a residual value, but sometimes 10% of cost price is used. Look at other pieces of equipment set up for the company you are in and follow whatever has been done in the past. The first month to depreciate is the month it was purchased. # of months depends on the type of equipment. Here are some that are typically used. Otherwise, refer to the keeper. The accumulated depreciation and Asset account need to be set up. Use an F4 to determine the account.

Large Equipment (Excavators, etc)  7 years (84 months)

Software & computers 3 year (36 months)

Vehicles 5 years (60 months)

Office Furniture 5 years (60 months)

4.  Go to the schedule tab and hit Calculate.  This should calculate the months and amount to depreciate.