Depreciation Book Fields

Here is a description of the fields on the depreciation book object.

Warning:

If you change a depreciation book after generating depreciation schedules, its depreciation schedules might be inconsistent with the change or might be terminated as a result of the action. When this occurs, a message appears at the top of the Depreciation Book detail page indicating that the depreciation schedules for the book need to be regenerated. To correct this issue, click Generate Depreciation Schedule to regenerate the depreciation schedules.

Key: * – Mandatory field; R – Read-only; G – Only available on Group types of depreciation book; S – Only available on Sub-Group types of depreciation book; C– Mandatory field when the Check Mandatory Fields on Save field in the Fixed Asset Management Settings custom setting is selected; M - only applicable for MACRS Tax Books.

Field Name     Description
Asset Cost   C Purchase cost or transfer cost of the item.
Asset Group   G Asset group that the depreciation book relates to. You cannot change a depreciation book's group.
Asset Sub-Group   S Asset sub-group that the depreciation book relates to. You cannot change a depreciation book's sub-group.
Business Cost R M The formula for calculating this cost is:
Asset Cost * Business Use Percent
Depreciation Book Name     Name of the depreciation book. An asset level book that has been copied from a group or sub-group will be prefixed with 'Copied_'.
Fixed Asset     Fixed asset to which the depreciation book relates.
Record Type     The type of depreciation book. This determines what the depreciation schedules are used for. This can be Accounting Book, Tax Book, MACRS Tax Book or Custom Book.
Parent Book     Lookup to the parent depreciation book. This field contains a value when the asset to which the book belongs has inherited a depreciation book from its asset group or sub-group.

Deductions & Allowances

Key: * – Mandatory field; R – Read-only; M - only applicable for MACRS Tax Books.

Field Name   Description
Additional Depreciation Allowance Amount M Any additional depreciation allowance amount that must be included in the MACRS calculation.
Claim Special Depreciation Allowance M Indicates that you want to claim the special depreciation allowance for this tax book.
100% Qualifying Property Asset  

Indicates that you want to claim the qualifying property assets deduction for this tax book.

Note: To apply this deduction, Claim Special Depreciation Allowance must also be selected.
Section 179 Deduction M The amount that can be deducted from the asset's cost for MACRS tax calculations under Section 179.
Special Depreciation Allowance Amount M The calculated amount that will be claimed as the special depreciation allowance. The formula for calculating this amount is:
(Business Cost - Section 179 Deduction) * Special Depreciation Allowance Percent
Special Depreciation Allowance Percent M

The percentage calculated for the special depreciation allowance. If Claim Special Depreciation Allowance is enabled, this field is populated automatically based on the asset's year in service:

50% for 2015-2017

40% in 2018

30% in 2019

0% for 2020 onwards

MACRS Depreciation

Key: * – Mandatory field; R – Read-only; M - only applicable for MACRS Tax Books.

Field Name   Description
Depreciation  Method M The depreciation method used in the MACRS tax depreciation calculation. The options available vary depending on the Depreciation System selected.
Depreciation System M The types of MACRS tax depreciation system: GDS or ADS.
MACRS Basis Cost M The cost to use in the calculation of the MACRS tax depreciation. The formula for calculating this cost is:
Business Cost - (Section 179 Deduction + Special Depreciation Allowance Amount + Additional Depreciation Allowance Amount)
MACRS Convention M The convention to use for the MACRS tax depreciation calculation. The options available vary depending on the Depreciation Method selected.
Recovery Period (Years) M The recovery period used in the MACRS tax depreciation calculation. The options available vary depending on the Depreciation Method selected.

Depreciation Schedule

Here is a description of the fields that determine how the asset is to depreciate. Several of these fields are not relevant for MACRS Tax Books.

Key: R – Read-only; T – Only used for tax depreciation books;

Field Name   Description
Accumulated Depreciation R Amount the asset has depreciated by to date. This is based on the depreciation amount in each posted depreciation schedule.
Note:

If the Active checkbox on a related depreciation schedule is not selected, the depreciation from that schedule is not included in the calculation.
Depreciation Formula R Visual representation of the depreciation formula applied based on the chosen Depreciation Method. This field is not relevant for MACRS Tax Books.
Depreciation Method   Method by which depreciation of the asset is to be calculated. You can choose from one of these standard depreciation methods or a custom one if your administrator has created one:
  • 150% Declining Balance
  • 250% Declining Balance (Germany COVID-19)
  • Double Declining Balance
  • Straight Line
  • Units of Production
  • Sum of the Years Digits
For information about the depreciation methods, see Depreciation Methods. This field is not relevant for MACRS Tax Books.
Quantity of Usefulness / Net Book Value R

Asset Cost minus Accumulated Depreciation in the accounting book.

Note:

If the Active checkbox on a related depreciation schedule is not selected, the depreciation from that schedule is not included in the calculation.
Salvage Value   Value of the asset at the end of its productive life. This is an estimate of the proceeds of selling the asset or trading it in at the end of its useful life. You must enter a number greater than or equal to zero.
Tip:

If there is a disposal cost associated with the asset, we recommend that you record this as a provision in your financial accounts.

For a MACRS Tax Book, the salvage value is assumed to be 0.00 (zero).
Service Life in Units   Number of units the asset is expected to produce during its useful life. This is typically used in a manufacturing scenario where a machine has a useful life determined by how much work it does or how many hours it has worked. This value is required when the depreciation method is Units of Production. This field is not relevant for MACRS Tax Books.
Service Life in Years   Number of years the asset is expected to be in productive use. This field is not relevant for MACRS Tax Books.
Time Period Basis   Time period by which the depreciation schedule is to update. You can choose from Yearly, Quarterly or Monthly. For a MACRS Tax Book, depreciation is always calculated on a yearly basis.
Period Start Date   Date from which this depreciation book is to be used to calculate depreciation. This field is not relevant for MACRS Tax Books.
Period End Date   Last date on which this depreciation book is to be used to calculate depreciation. This field is not relevant for MACRS Tax Books.
Written Down Value T Asset Cost minus Salvage Value minus Accumulated Depreciation to be claimed in the tax book.
Note:

If the Active checkbox on a related depreciation schedule is not selected, the depreciation from that schedule is not included in the calculation.

Related Lists

The Depreciation Book Detail page of fixed asset level depreciation books contains related lists that show the Depreciation Schedules associated with that depreciation book.

Buttons

Button Description
Generate Depreciation Schedule Generates depreciation schedules for the current book.
Push to Assets This button is available on group and sub-group level depreciation books. Click it to push a new depreciation book to the related assets, or apply changes to an existing depreciation book. If the changes mean that an asset's depreciation schedules need to be regenerated, a message prompts you to do this. See Grouping Assets for more information.