Providing depreciation information
You can add depreciation information for a CI using one of several depreciation methods. Before you provide depreciation information, you must create a record for the CI and save the record. You must also set the status of the CI to either Received or Deployed.
To provide depreciation information
- Open a CI, as described in Using search
- Click the Financials tab.
- Specify a unit price.
- In the Accounting Information area, click Create.
- If depreciation has not yet been calculated, the Accounting Information area includes a Create button. After depreciation has been calculated, this area includes a View button.
In the Create CI Depreciation dialog box, for Method, select the depreciation method that you want to use for this CI.
Select this method If the CI Straight Line Depreciation Depreciates at a constant value per year Declining Balance (150%) Depreciates at a constant rate per year, accelerated by a factor of 1.5 (150%) Double-Declining Balance (200%) Depreciates at a constant rate per year, accelerated by a factor of 2.0 (200%) Sum of-the-year's Digits Loses more of its value early in its lifetime
- For Useful Life (months), specify the number of months that you expect this CI to be in service.
- For Depreciation Starts, select the date when you want to start calculating depreciation for this CI.
BMC Asset Management calculates depreciation on the last day of the month prior to the month you select, even if you select a specific date.
- If this CI has a salvage value, specify it in the Salvage Value field and select a currency type from the list.
The salvage value is the estimated value that an asset will realize at the end of its useful life. BMC Asset Management uses the salvage value in calculating the monthly depreciation figures. For example, if a laptop costs $4,000.00 and has a useful life of 12 months and a salvage value of $1,000.00, BMC Asset Management uses $3,000.00 as the fully depreciated amount. The default amount for this field is $0.
- Click Compute Depreciation.
- Click OK in any confirmation messages that appear.
The Depreciated field is now set to Yes, and the Create button is changed to View.
- In the CI record, click Save.