Ownership/Depreciation

Note: Non-linear assets do not display on this screen. Use the Data -> Equipment Units -> Fleet Equipment screen.

Note: Non-linear assets do not display on this screen. Use the Fleet Equipment screen.

The Ownership/Depreciation tab enables you to display and define data related to the ownership and depreciation of linear assets.

Tip: To limit the display of information in the grid and maximize performance, use the filter.
You can search by Equipment ID, Serial Number, Asset Category ID, SLA Equipment Category, Assigned Repair Location ID, Department ID, and other values. The list of searchable fields on the filter is extensive. Use the scroll bar to view all fields.

The Primary Information screen supports location-level access control, so you must belong to a user group with the applicable authorizations to make changes or updates.

Detail View Header

The field in the top section of this tab defaults from the information entered on the Basic Info tab. The field is read only.

Equipment ID

Identifier of the equipment unit currently selected in the grid. This field has a list box. The equipment unit year, manufacturer, and model display to the right of the ID.

Tip: You can set a zoom button for this field to detect the type of equipment and display the appropriate screen. If you used Administrator Mode to add a zoom button, you will need to use this mode again to remove the user-definied zoom button for this function to work.

Asset type

The type of asset.

Detail View

The fields in the bottom section of this tab define the ownership and depreciation information. Unless otherwise indicated, these fields are optional.

Depreciation method

Depreciation method for this equipment unit. In insert or update mode, this field has a list box. The default value for this field are specified on the Data -> Equipment Units -> Setup -> Options screen. Depreciation is computed during end-of-period processing. This field is optional.

The methods supported, and the processing choice that computes depreciation for each method, are as follows:

BRITISH DECLINING
CANADIAN DECLINING
DAILY STRAIGHT LINE
STRAIGHT LINE
SUM OF YEARS DIGITS
NONE

For more information regarding each type of Depreciation, please see Depreciation Rules.

Note: The default value for this field is determined on the Equipment—Setup—Options screen.

Depreciation

The following fields are used for depreciation. All fields are optional.

Life months

Number of months to represent the life of the linear asset. If the depreciation method is STRAIGHT LINE, depreciation is calculated only on assets for which this field has a value other than zero. If the depreciation method is not STRAIGHT LINE, this field is not used.

Months remaining

Number of months remaining from the Life months field. If the depreciation method is STRAIGHT LINE, depreciation is calculated only on units for which this value is other than zero, and decrements this value each month. Depreciation stops when this value reaches zero. If the depreciation method is not STRAIGHT LINE, this field is not used.

Salvage value

Salvage value to remain after full depreciation of the linear asset. If the depreciation method is STRAIGHT LINE, this field is blank, and there is a value in the Life months field, the unit is depreciated to zero salvage value. If the depreciation method is not STRAIGHT LINE, this field is not used.

Salvage value pct

Percentage of original cost to treat as salvage value.

Current declining balance

Current value of the declining balance for the unit. This information is used only if the depreciation method is 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

Indicates who owns the linear asset. The choices are:

OWNED: Depreciation is calculated on the linear asset and the appropriate labor and parts/internal markup percentages are used to calculate labor and parts charges. This is the default.
LEASED: If there is a value in the Monthly rent field, accumulated lease rent expense is computed and retained.
CUSTOMER: Equipment unit is owned or operated by a customer but maintained or repaired in shops on the organization’s premises.

A work order must be created as an estimate before updating with actual posted costs.
On the Shop Activity - Setup - Options screen, Rates and Markups tab, the On work for outside customers keep costs billed to customer option decides how the labor rate is calculated for ownership.
SEPARATE FROM (and the work order is an estimate): The base rate is the task/class hourly rate. The labor overhead percent is set as follows: If the overhead location is Y, then the outside labor overhead is used by location, otherwise, this uses the system outside labor overhead.
TOGETHER WITH: The base rate is the task/class hourly rat. Note: this base rate is used only if there is not a flat task rate. If there is a flat task rate, that rate is used. The labor overhead percent is set as follows: If the overhead location is Y, then the outside labor overhead is used by location, otherwise, this uses the system outside labor overhead.

Leased unit

Lease ID

Identifier of the lease associated with the linear asset. This field has a list box. It also has a Zoom button to the Data -> Equipment Management -> Lease Agreements screen, on which you can view information about the vehicle's lease agreement.

When you enter information in this field, information on the Lease Agreements screen is used to perform the following actions:

The Monthly rent field displays the default monthly payment amount from the Payment Info tab of the Lease Agreements screen, if specified.
The number of months in lease term on the Basic Info tab of the Lease Agreements screen is added to the date in the In service date/Actual field on the Acquisition tab of this screen and the result displays 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 processing.

Lease expiration date

Expiration date of the lease. If the Lease ID field has a value, the number of months in the lease term on the Basic Info tab of the Lease Agreements screen are added to the date in the In service date/Actual field on the Acquisition tab of this screen and the result displays in this field.

Note: The Lease expiration date is required if the asset has an Ownership of LEASED and the Require valid lease on usage tickets for leased equipment option on the General Info tab of the Equipment—Setup—Options screen is checked.

Residual value

Projected value of the linear asset at the end of the lease.

Age in months

Age of the asset in months (equal to current date minus in-service date divided by 30). If the asset has been sold, the age is calculated as the difference in months between the disposition date and the actual in-service date. If the asset does not have an in-service date, this field remains blank. This field is display only.