NetAsset - Multi-Book Alternate Depreciation Schedules
Multi-Book Alternate Depreciation Schedules
Use Case: NetAsset has the ability to generate alternate depreciation schedules for an asset beyond just the primary schedule. While a primary schedule is intended to be used for GAAP or IFRS financials, a customer may also be required to maintain alternate schedules for local books or statutory reporting, which may requires a different depreciation method. Up to 10 subtabs are available per asset to be used to create an alternate depreciation schedule. This section outlines how to generate alternate schedules and create journal entries for each depreciation schedule.
- Visit the Manage Alternate Subtabs for more information on customizing the available Alternate Schedule Subtabs
- Visit the NetAsset Multi-Book Setup for more information on customizing the system to enable multi-book within NetAsset
Note, this process should be completed after the primary schedule has been generated.
STEP BY STEP PROCESS
- Create or navigate to the desired asset to generate an alternate depreciation schedule. Navigate to the alternate schedule subtabs.
- Ensure the information in the "Schedule Information" field group properly reflects any differences between the primary asset information and the information that should be used on the alternate schedule (for example, the depreciation method may be a MACRS method instead of straight-line if your alternate schedule is for tax purposes). Any information left blank will be populated by what is contained in the asset's primary information. If the information needs to be adjusted, edit the record and make the necessary adjustments.
- If you are using the alternative schedule for Multi-Book under the "System Controls" field group, select the accounting book that you will post your journal entries to:
- Once the schedule information is correct, click the "Create Alt. Schedule" button at the top of the asset. You will be directed to the "Generate Depreciation Schedules" page:
- By default, a filter will be set for the asset you were previously on to limit what you see on this page. Adjust the "Alternate Depreciation Schedule" filter to generate schedules for different subtabs on your asset record.
- You will see your filtered asset and subtab summarized below. This is a good time to double-check that the information contained in the fields (pulled from the asset record) is correct before generating the schedule:
- Select any of the "Alternate Schedule Options", explained in the table below.
| Field Name | Description | Example |
Override Depreciation Method | A depreciation method selected here will override whatever is shown on the asset line below, or the primary asset depreciation method if blank. | MACRS 100% Bonus Depreciation - 3 year property |
Depreciation Convention in Disposal Period | The convention used to determine depreciation in the disposal period if you dispose of the asset before its end-of-life date. | Half Depreciation |
Write Off Date | If you know the day that you will write the asset off of your books via tax deduction, you may input it here. | 6/1/2024 |
| Lock Schedules | No schedule will be generated, but a new schedule cannot be created to override the current one. | Unchecked |
| Unlock Schedules | Unlock a locked schedule and regenerate the alternate schedule according to the newly-input parameters | Checked |
- Once you're satisfied with the information you've provided, click the "Generate Schedules" button.
- You'll be navigated to a processing page. You may refresh the page until the asset appears in the sublist on the screen and then select the asset link to return to the asset page.
- The schedule will now appear in the sublist at the bottom of your alternate schedule tab, along with any information you overrode on schedule generation.
- When you're satisfied with the depreciation schedule, ensured the schedule information is correct, and have set the accounting book to post journals to if applicable, you're now ready to capitalize the asset. Select the "Queue for Capitalization" button at the top of the asset page.
- Once the asset has a status "Ready to Capitalize" journal entries can be processed.
- To process the Journal Entries select NetAsset > Process Monthly Journals > Run Monthly Asset Journals.
- Make sure all schedules you want to include (i.e. both primary and secondary books) are selected and click Create Journals.
- You are also able to filter for only certain depreciation schedules (primary or alternate) using the Depreciation Schedule filter shown below.