NetAsset - Usage Based Depreciation
USAGE BASED DEPRECIATION SCHEDULE CREATION
Use Case: Depreciation varies from period to period based on the actual usage incurred by the asset.
Prerequisite: The usage bundle has been installed by your administrator and the NetAsset Setup System Setting, Usage Based Depreciation, has been enabled.
STEP BY STEP PROCESS
- Navigate to an NetAsset record where depreciation should be based on usage.
- On the Usage subtab make sure there is an Estimated Lifetime Usage At In-Service and optionally, a Usage Unit of Measure
- Click the New Net Usage button to create a new usage record with the usage amount and the date it was incurred. If the volume of NetAsset Usage records to enter in is high, this can be done via CSV Import as well.
- After all NetUsage records have been entered into the system, navigate to NetAsset > Update or Modify Assets >Generate Usage Depreciation Schedules to get schedules created.
- You will be redirected to a screen where you can select the desired filters to narrow the subset of assets to generate depreciation schedules for:
- When satisfied with the filters selected, click the Generate Schedules button to initiate the process of creation schedule entries.
- Refresh the page periodically to update the status of the processing and reveal the usage that has been processed.
- Click on the link in the Asset column to view the asset’s depreciation schedule updated with an entry for the depreciation to be recorded.
- Usage calculates with the following formula: (Period Usage / Remaining Usage) * (Rolling Net Book Value - Residual Value)
- Once you are satisfied with the schedule entries created, monthly journals can be run as normal.
- Once the status is Complete you can click the Export button to save the processed results as a .csv file