Fixed Assets Profile

The purchase amount for the asset.

You can automatically update this field from the invoice or A/P voucher.

The disposal amount is automatically updated when an asset is sold.

Note:  The amount can also be entered manually as long as the unit does exist in the CGIBASE file and has not been invoiced (sold).

The G/L asset account used for the asset.

This account must have an application type I in the chart of accounts.

The G/L accumulated depreciation account used for the asset.

This account must have an application type W in the chart of accounts.

This account is posted to during the depreciation month end final.

The G/L expense account used for the depreciation of the asset.

This account must have an application type of H in the chart of accounts.

This account is posted to during the depreciation month end (opposite amount to the amount posted to depreciation account).

The depreciation method used for the asset.

The system has a hard-coded depreciation threshold of $2.00, at which point the system automatically switches to a Straight Line depreciation method, regardless of whether the code assigned to the unit is supposed to be Declining Balance.

For example, if a unit has a Net Book Value (NBV) of $2.58 in the first month of the company's fiscal year, using a Declining Balance method of 45% would decrease the value of the unit to $1.42. The system recognizes this, and as such, changes the depreciation to Straight Line so that the unit only depreciates by .22 cents per month (thereby reducing the value of the unit to 0.00 after 12 months.)

The life of the asset. The number of years it takes to depreciate the asset.

Only certain values can be entered in the Life field depending on the depreciation method being used.

Indicates if mid-quarter convention should be used. Select the checkbox for mid-quarter convention or leave checkbox blank for half year convention.

• Mid-Quarter Convention—Use this method if the asset was purchased and placed into service in the midpoint of the last quarter of the taxable year (the previous quarter's depreciation + ½ the depreciation for the quarter the asset was purchased). Mid-Quarter Convention can only be selected for methods 16 and 17.

• Half-Year Convention—The depreciation allowed in the first year is one half the full year's depreciation. This is based on the assumption that the asset being depreciated was placed into service half way through the first year (before July 1). The taxpayer is entitled to another half-year of depreciation at the end of the normal recovery period in order to compensate for this calculation.

Indicates if luxury auto limits should be applied to the asset.

Limits the amount of depreciation allowed per year. The limit varies depending on the date of purchase. If the calculated depreciation is greater than the limit, then the limit is used.

The depreciation basis for the asset, calculated as:

Original Cost - Non Depreciable portion + Adjustments - Salvage Amount - Section 179 amount.

The salvage amount for the asset. This is used to calculate the depreciation basis.

If method 25, 26, 27, 28, 29 or 30 is being used (Declining Balance Method Depreciation method that provide for a higher depreciation charge in the first year of an asset's life and gradually decreasing charges in subsequent years.), the depreciation is calculated using depreciation basis plus salvage. The total depreciation allowed is still limited by the depreciation basis.

The section 179 amount for the asset.

The section 179 amount is extra depreciation allowed in the year of purchase. The total section 179 amount allowed for all assets is limited. Refer to the depreciation and section 179 expense for the current tab year depending on the year of purchase. This value is used to calculate the depreciation basis.

• The section 179 amount must be less than or equal to $5000 for any asset purchased prior to Jan 01/87.
  

• The section 179 amount must be less than or equal to $10,000 for any assets purchased on or after Jan 01/87.
  

• The section 179 amount can not be greater than the purchase amount for the unit.
  

• The section 179 amount plus adjustments, less the non depreciable portion, less the salvage amount less the section 179 amount can not be less than zero.
  

• A section 179 amount must be greater than or equal to zero.

The date and amount of depreciation posted to the asset during the last Deprecation Month End Final.

These values are NOT updated by any depreciation manually posted using invoicing systems.