Fixed Assets Help Center
User Guide

2. Book Details

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Book Details

The Books contain the depreciation method, life of the asset, residual value, and convention. Available Book Detail Conventions are described below.

  1. Month/Quarter/Year – Irrespective of the date of acquisition, the first full period’s (month/quarter/year) depreciation is provided in the period of acquisition.

  2. Mid-Month/Mid-Quarter/Mid-Year – If the asset is acquired on or before the mid-point of the period (e.g., the 15th of the month), then the first full period’s depreciation is provided in the period of acquisition. If the asset is acquired after the period’s mid-point (e.g., the 16th of the month), then the first full period’s depreciation is provided in the period following the period of acquisition.

    *This can result in another period’s depreciation being applied in an extra period after the end of the useful life.

  3. Half-Month, Half-Quarter, Half-Period – Irrespective of the date of acquisition, the first period’s depreciation is always HALF (1/2) of the full period’s depreciation.

    *This will result in another HALF (1/2) period’s depreciation being applied in an extra period after the end of the useful life.

  4. Tax books can only be assigned to ONE asset class, so you should set up unique tax books for each class. The same Financial Book may be assigned to as many Asset Classes as needed. Also, the Residual Value must be included in the Book for tax depreciations and on the Asset for financial depreciations.

To create new Financial or Tax Books, please follow these steps:

  1. Navigate to Fixed Assets > Book Details > New Book Detail.

  2. Book Name: Choose the naming convention that suits your requirements. The best practice is to assign the book’s name following the life of the asset class and the appropriate depreciation.

  3. Example: Straight Line depreciating over 36 months: “FIN_SL_36.”

  4. Asset Life: Provide the numeric value used with the Convention field (e.g. 36, 48, etc.). This is also required for infinite depreciation methods, such as the Diminishing Balance method, to create a finite number of depreciation schedules. An exaggerated Asset Life (e.g. 9999) can be used in conjunction with the Minimum Value field below to create a practical number of Depreciation

  5. Convention: Choose the convention from the drop-down menu.

  6. Residual Value: Salvage value. Use this field to add residual value for tax depreciation. If residual value is required for financial depreciations, use the field on the Asset.

  7. Depreciation Method: Click on the search magnifying glass and choose the appropriate depreciation method, such as Straight Line (SL) for Financial Depreciation.

  8. Do Not Depreciate: Enable this Selection Box for Books that require no Depreciation, e.g. Land.

  9. Minimum Value: When Depreciation Schedules are calculated and it is detected that further depreciation entries would let the Net Book Value of the asset fall below this Minimum value, the current Net Book Value of the asset is depreciated in the current period, and no further Depreciation entries are produced