[EM] Equipment Setting Up Depreciation

Eligibility

• Only set up if the asset is over $2,500 and will be capitalized

Navigate to Setup

• Go to EM > Programs > EM Asset Setup

Enter Asset Details

• Equipment Number: Use the number from EM Equipment setup

• Asset Number & Description: Same as EM Equipment

• Purchase Price: Enter cost

• Residual Value: Usually 0 for GAAP; sometimes 10% of cost

• Depreciation Start Month: Month of purchase

• Number of Months: Depends on equipment type:

  • Large Equipment (e.g., Excavators): 84 months (7 years)

  • Software & Computers: 36 months (3 years)

  • Vehicles: 60 months (5 years)

  • Office Furniture: 60 months (5 years)

• Accounts: Set up Accumulated Depreciation and Asset Account using F4

Calculate Depreciation

• Go to the Schedule tab and click Calculate to compute months and depreciation amount