NetAsset - Configure Depreciation Methods

NetAsset enables users to set up multiple depreciation methods. Depreciation Methods can be defined using a formula or a custom table.

The most common depreciation methods are included within the NetAsset bundle:

• Straight Line
• Non-Depreciating
• Double Declining Balance
• Usage Based

Any unused Depreciation Methods can be inactivated. Additional Depreciation Methods can be created by following the steps below. 

STEP BY STEP PROCESS

• Navigate to NetAsset>NetAsset Setup>Manage Depreciation Methods

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• Select New NetAsset Depreciation Method to bring up the depreciation method setup page.

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• Input the following information into the form:
  • A name and description for the depreciation method
  • The interval at which depreciation should be posted against the asset as well as calculated (Monthly, or Annually)
• One of the following:
  • Depreciation Formula (see the Formula Help details below the field)
    1. (Optional) Enter a different formula to use following a modification or if the initial useful life has passed
    2. Depreciation Table with percentages that sum to 100%
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  Field	Description	Example
  Name	Enter a name for this term record.	Straight Line
  Description	Optionally input a description for the depreciation method.	Main method used for depreciating assets.
  Override Depreciation Convention	Typically defaulted in from asset type, but can be overridden on the depreciation method here: Full Period: Depreciation calculated for full period at start and in all subsequent periods. Mid Period: Half period depreciation at start and end. Full depreciation for all other periods. Mid Month Cutoff: Full depreciation if in-service by 15th, else starts next period. Full depreciation thereafter. Next Period: Depreciation starts period after in-service. Full depreciation thereafter. Prorated Period: Depreciation based on exact days in first and final periods. Full depreciation between. Half Year: Six months depreciation in first and final years, regardless of start date. Full year between.	Full Period
  In-Service Formula	Input the formula upon which depreciation should be calculated by at the in-service date. Refer to the abbreviation key below for the exact rules for depreciation formulas.	(INB - RV) / IUL
  Post-Modification Formula	Input the formula upon which depreciation should be calculated by following a modification. Refer to the abbreviation key below for the exact rules for depreciation formulas.	(NB - RV) / UL
  Extended Life Formula	Input the formula upon which depreciation should be calculated by once the asset has past its useful life. Refer to the abbreviation key below for the exact rules for depreciation formulas	(NB - RV) / UL
  Depreciation Posting Interval	Indicate the interval with which depreciation will be recorded under this depreciation method. For non-monthly depreciation, note that depreciation will be recorded on the first day of the accounting period.	Monthly
  Depreciation Calculation Interval	Indicate the interval with which depreciation will be calculated under this depreciation method. Only relevant for formula based depreciation methods.	Monthly
  Calculated Useful Life	Indicates that the useful life of this asset should be calculated by the depreciation drawdown.	Checked

Configuring Tax Depreciation Methods in Mass

The NetAsset Automatic Import of Tax Depreciation Methods feature enables users to import tax depreciation methods directly into NetAsset without manual CSV imports. This streamlined approach is designed for users leveraging alternate schedules or the Tax Complete add-on within NetAsset.

Previously, users needed to manually import both the depreciation methods and associated table lines, which was time-intensive. The new tool provides a faster, automated way to complete this process.