Ownership/Depreciation |
The Ownership/Depreciation tab enables you to display and define data related to the ownership and depreciation of components.
Tip: To limit the display of information in the grid and maximize performance, use the filter. You can search on equipment ID, part ID/suffix, PM program class, SLA equipment category, assigned repair location ID, and operator ID/name, among other values. The list of searchable fields on the filter is extensive; use the scroll bar to view them all.
Note: Filtering data based on fuel/fluid type uses the information in the Supported fuel/fluid types screen group on the Codes tab.
The Primary Information screen supports department-level and location level access control, so you must belong to a user group with the applicable authorizations to make changes or updates.
The field in the top section of this tab defines the data that displays.
Equipment ID
Identifier of the component currently selected in the grid or that you are defining. This field has a list box. The component year, manufacturer, and model display to the right of the ID.
When you insert a component with an asset category that supports automatic numbering and this field is blank, the system generates an equipment ID that follows the format specified in the Custom ID structure field on the Data -> Equipment Units -> Setup -> Asset Categories screen. If the asset category does not support automatic numbering, the equipment ID is based on either part/location settings or system settings. If you specify an ID and the component’s asset category supports automatic numbering, the ID is not overwritten.
Whether an asset category supports automatic numbering is specified on the Data -> Equipment Units -> Setup -> Asset Categories screen.
The data in the fields in the bottom section of this tab define the ownership and depreciation information. Unless otherwise indicated, these fields are required.
Depreciation method
Depreciation method for this equipment unit. The Data -> Equipment Units -> Setup -> Options screen determines the default value for this field. This field has a list box. This field is optional.
Depreciation is computed during end-of-period processing. The methods supported, and the processing choice that computes depreciation for each method, are as follows:
CANADIAN DECLINING
NONE
Depreciation
The following fields, which are used for depreciation, are optional.
Life months
Number of months that represent the life of the component. If the Depreciation method field specifies STRAIGHT LINE, the system calculates depreciation only on units for which this field has a value other than zero. If the Depreciation method field specifies any other value, this field is not used.
Months remaining
Number of months remaining from the Life months field. If the Depreciation method field specifies STRAIGHT LINE, the system calculates depreciation only on units for which this field has a value other than zero, and decrements this value each month. Depreciation stops when this value reaches zero. If the Depreciation method field specifies any other value, this field is not used.
Salvage value
Salvage value to remain after full depreciation of the equipment unit. If the Depreciation method field specifies STRAIGHT LINE and there is a value in the Life months field, the unit is depreciated to zero salvage value. If the Depreciation method field specifies any other value, this field is not used in the calculation.
Salvage value pct
Percentage of original cost to treat as salvage value. Salvage value percent is used for end of year calculations, and not for regular depreciation calculations. Refer to the Computation of Replacement Cost page to see how this is calculated.
Current declining balance
Current value of the declining balance for the unit. The system uses this information only if the Depreciation method field specifies BRITISH DECLINING.
Accumulated depreciation
The sum of all months of depreciation. This field is display only.
Daily depreciation
The value of the daily depreciation. This field is display only.
Ownership
Specifies who owns the component. This field has a list box.
OWNED: Depreciation is computed on the component. This is the default.
LEASED: Accumulated lease rent expense is computed and retained if there is a value in the Monthly rent field.
CUSTOMER: Component is owned or operated by a customer but maintained or repaired in shops on the organization’s premises.
Leased unit
If a component is leased, the following fields provide more information about it.
Lease ID
Identifier of the lease associated with the equipment unit. When you enter information in this field, the system uses information on the Data -> Equipment Management -> Lease Agreements screen to take the following actions:
Displays, in the Monthly rent field, the default monthly payment amount from the Payment Info tab of the Lease Agreements screen, if specified
Adds the number of months in lease term on the Basic Info tab of the Lease Agreements screen to the date in the In service date/Actual field on the Acquisition tab of this screen, and displays the result in the Lease expiration date field.
Monthly rent
Total monthly rent for this unit. When you enter information in the Lease ID field, this field displays the amount from the Default monthly payment amount field on the Payment Info tab of the Lease Agreements screen, if specified. If the Ownership field specifies LEASED, monthly costs are computed automatically for the next month during each end-of-period monthly process. This field is optional.
Lease expiration date
Expiration date of the lease. If the Lease ID field is blank, the system adds the number of months in lease term information on the Basic Info tab of the Lease Agreements screen to the date in the In service date/Actual field on the Acquisition tab of this screen, and displays the result in this field. This field is optional.
Lease expiration meter
If the equipment unit is under warranty, this is the meter reading at which the warranty expires. If you leave this field blank or enter a zero (0), the warranty expires on the date indicated in the Lease expiration date field. This field is optional.
Note: This data does not stop lease payments from being charged each month. It is available for exception reporting.
Residual value
Projected value of the equipment unit at the end of the lease.
Age in months
Age of the component in months (equal to current date minus in-service date divided by 30). If the component has been sold, the age is calculated as the difference in months between the disposition date and the actual in-service date. If the component does not have an in-service date, this field remains blank. This field is display only.