Depre123depre123.com/wp-content/uploads/2015/04/Depre123-User... · 2015. 4. 7. · 3/26/2015 Page | 7 Depre123 User Guide.docx Individual Asset Record From the Manage Asset form

3/26/2015 Page | 1 Depre123 User Guide.docx

Depre123

User’s Guide


Depre123 User’s Guide

Table of Contents Startup .................................................................................................................................................... 3

Manage Assets ........................................................................................................................................ 4

Manage Assets ........................................................................................................................................ 5

Period Settings .................................................................................................................................... 6

Asset Filters ......................................................................................................................................... 6

Calculated Results ............................................................................................................................... 6

Individual Asset Record ........................................................................................................................... 7

Other Information ............................................................................................................................... 8

Depreciation Detail .............................................................................................................................. 8

Depreciation Schedules ....................................................................................................................... 9

Asset Classes ......................................................................................................................................... 10

Data Import ........................................................................................................................................... 13

Reports ................................................................................................................................................. 18

Acquisitions ....................................................................................................................................... 20

Asset Listing....................................................................................................................................... 21

Depreciation Detail ............................................................................................................................ 22

Dispositions ....................................................................................................................................... 23

Depreciation Roll Forward ................................................................................................................. 24

Twelve Month Projection .................................................................................................................. 25

Five Year Projection ........................................................................................................................... 26

Depre123 Depreciation Guide ............................................................................................................... 27


Depre123 is a cloud based application to manage fixed assets and generate a variety of depreciation

reports. Depre123 runs on the Salesforce.com platform on any desktop or mobile device. Get all of your

depreciation answers based on just 3 key values (cost, date, asset class) and then utilize the open design

to add all necessary fixed asset detail.

Startup To launch the Depre123 application:

1. Open your web browser

If you have not branded your Depre123 application

with a custom login domain (ex:

https://somecompany.my.salesforce.com), go to the

standard Salesforce login page at

https://login.saleforce.com. When prompted, enter

your assigned Username and Password.

2. If the “Application” at the top right of the page is

not set to “Depre123”, click the pulldown menu at the top

right to select “Depre123”. After changing applications,

the tabs displayed reflect the commonly used functions

within the Depre123 application:

3.

a. Accounts

b. Reports

c. Asset Class

d. Depre123 Resources

https://somecompany.my.salesforce.com/


From here there are options to go to your Accounts, edit Reports, maintain Asset Classes or look at the

Depre123 Resources. There is also a powerful global search feature available that will

Manage Assets

Click on the Accounts tab to see all available accounts. If you do not see the account you are looking for,

and then click on the “Go!” button to get a full list of all accounts.


When you select an account, you can then see all of the associated detail and use the Manage Assets

button to maintain your fixed assets.

Manage Assets Depre123 presents a listing of asset records for the currently selected account. This listing can be

filtered by dates, asset class, location or any other field on the Assets. From this listing individual assets

can be opened for further inspection or modification.


Explain concept of field sets and how the columns of this form can be changed

by the user.

Period Settings The period settings determine the schedule type of the calculated results. Additionally, you can set the

Start and End period for the selected Tax Year.

Asset Filters By default Manage Assets will display all fixed asset records for the selected account. If you want to

work on a subset of records, there are filter options available for dates, type of asset and other values:

Calculated Results As you navigate through the list of assets, the calculated results based on the period settings are

displayed for each record.


Individual Asset Record From the Manage Asset form you can click on any individual asset to open a new tab with all the details

for the selected record. Here is a sample asset:

The fields shown above are an example of typical asset properties. Some of the fields are required and

cannot be changed:

System Asset Number

Client

Asset Name

Additional Comments

Asset Cost

Acquisition Date

Service Date

Asset Class

Asset Class Description

Company Asset Number

Asset GL Code

Accum Gl Code

Expense GL Code

The other fields are user definable and the labels can be changed. Additionally, up to 500 custom fields

can be added to help track fixed assets. Each of these fields can be text, numeric or pick lists. There are

many options to customize the Asset Maintenance form to fit any organization.


Other Information Following the asset detail there are sections for:

Disposals – if the asset has been disposed, the date, proceeds and method will be displayed

System Information – shows who created the record and date of last edit

Period Settings – see above

Asset Depreciation Summary – see above

Depreciation Detail – see below

Depreciation Schedules – see below

Notes & Attachments – allow text and images to be attached to this asset record

Depreciation Detail The monthly calculations are available in the depreciation detail section. Running down the left hand

side as rows are the 12 fiscal periods with 6 years’ worth of detail as columns showing depreciation

numbers for each individual period. The years displayed are based on the period settings and can be

changed by altering the selected tax year. At the bottom of the detail there are annual, cumulative and

remaining totals for each year. This detail display is very useful in answering calculation questions.


Depreciation Schedules There will be a list of depreciation schedules based on any reports that have been run. Each time a

report is selected Depre123 will ensure that the appropriate calculated numbers are generated for the

selected schedule type and current period settings. Here is a sample schedule:

At the top is the schedule name which is a unique combination of schedule type and current period.

Below that you can see all of the calculated values that are available for reporting. None of these values

can be edited since they are generated by calculation logic based on the cost, date and asset class.


Asset Classes Below is a sample asset listing for some common types of fixed assets, such as Furniture, Computer

Equipment and Automobiles:

IRS Publication 946 explains how you can use depreciation to recover the cost of business or income-producing property. One of the key elements in determining the correct annual depreciation amount is selecting the appropriate property class. The property classes are listed in Appendix B of this publication with the class life and correct recovery periods for both General Depreciation System (GDS) and the Alternative Depreciation System (ADS).

Depre123 includes an enhanced version of the IRS property class table with the following information for each asset class:

Property Type Listed Property Depreciation Method First Year Convention Recovery Periods Bonus Code Section 179 GDS or ADS


The asset classes can then be associated with your corresponding General Ledger codes. This allows the business rules in Depre123 to set the correct default depreciation values during asset data entry and ensure correct calculations.

Source: Publication 946 – How To Depreciate Property

Appendix A – MACRS Percentage Table Guide o General Depreciation System (GDS) o Alternative Depreciation System (ADS)

Appendix B — Table of Class Lives and Recovery Periods

Each of these classes can be selected to maintain the detail settings for bonus depreciation, property

type, section 179 and associated general ledger code. The default method convention and recovery life

is also defined for each depreciation schedule. In the example below, you can see the values for

furniture and fixtures:

http://www.irs.gov/pub/irs-pdf/p946.pdf


Additionally, for each individual asset class you can see related list for:

General Ledger codes

Fixed assets

As you can see there is typically one or more general ledger code associated with each asset class. The

general ledger codes for asset, accumulated and expense can be different for each client’s assets.

There is also a list of every asset for this client that is utilizing this defined asset class. This list will display

5 asset records by default but there are options to display more or go directly to the complete list. This

is a quick way to see assets for this class without running a report or setting any special filters.


Data Import Depre123 has a data import option to load fixed asset information from a spreadsheet or other software

package. From the Manage Assets form click on the “Launch Asset Import Manager” button to see a

screen similar to this:

The key to converting data is to format all of the fields to match your asset layout. Depre123 includes a

utility to create a spreadsheet template by clicking on the “Download CSV Import Template” button.

This is a dynamic process that will build the template based on your current asset configuration. You can

then use this template to map each column of the spreadsheet to the corresponding field in Depre123.

You can also see that there are import notes on this form to point out the required data fields, valid

formatting options and limits of the import processing.

The basic import process is to select a client to update, choose an Import Type and then start Salesforce

import wizard. Here are the detailed steps:

1. Select client to update

2. Click on the Import Type, either Append or Replace and then click on the “Launch Salesforce

Import Wizard” button. NOTE: There will be a warning message displayed to ensure you have


selected the correct option before proceeding. Click OK after reading the warning to proceed or

Cancel to exit.

3. If you choose OK then you will see a Salesforce Import:

4. Select Custom Objects and then Asset


5. Select Add New Records and set any lookup values

6. Select the file to process and click Next to see the mapping


7. The field mapping shows each field of the Salesforce Asset object and the associated column in

your import file. Before you proceed, you can verify everything is mapped correctly.

8. The final screen displays that you are about to add new records to your assets. Click the Start

import button to begin processing.

9. Salesforce will then respond with a message indicating the import has started.


10. Based on the number of records being processed, you can view the results of your import and

see when the update is complete.

At this point your new assets are available for further maintenance and reports.


Reports The simplicity of data entry had been carried through to the reporting options. All you need to do is

select the tax year, current period and schedule type to begin processing. The calculations will be

processed to build the schedule results. Once completed, simply select the report to run from the list of

available Depreciation Reports.

Standard reports include:

1. Acquisitions

2. Asset Listing

3. Depreciation Detail

4. Dispositions

5. Roll Forward

6. Twelve Month Projection

7. Five Year Projection

8. Monthly Journal Entries

Depre123 comes with standard reports, however an unlimited number of custom reports can be built

using Salesforce’s sophisticated report builder.


All reports offer fully customizable filtering and sorting with ability to export data to Excel or as a CSV

file. Here are the steps to run a report:

1. Select the report to run from the drop down options

2. Set the run parameters for Tax Year, Schedule Type and Period Start/End

3. Click on the “Build Schedule” button and the system will check to see if the calculated results

have been previously generated for these run parameters. If they have, then the “Launch

Report” button will immediately appear. If not, then Depre123 will calculate depreciation and

generate the necessary schedule records for the report. NOTE: As new assets are edited or

added, the build schedule process will rerun the calculations to ensure accuracy.

4. When the calculations are complete, click on the “Launch Report” button to see the report for

the selected parameters.

Note that the report results can easily be sorted by any column by just clicking on the column heading.


Acquisitions

The Asset Acquisition report displays all of the assets acquired between the selected period begin and end dates. The selected periods can be:

A single month 3 months or a quarter 6 months or half the year 12 months or the entire year Any number of months to show year-to-date

Below you can see a sample Asset Acquisition report:

An asset acquisition report includes the columns:

1. Asset Number – unique asset identifier 2. Description 3. General Ledger Code – associated G/L code for this acquisition 4. Acquisition Date – the date when the asset was acquired 5. Cost – purchase price of the asset


Asset Listing The Asset Listing report displays many of the key asset properties.

Below you can see a sample Asset Listing report:


Depreciation Detail

The Depreciation Detail report displays a “snapshot” of your fixed assets as of the end of the selected accounting period. This means all the numbers presented reflect their true value at the end of the period. Some people will also refer to this type of report as a Net Book Value report.

Below you can see a sample Depreciation Detail report:

The columns of this report include:

1. Unique asset identifier and optionally description 2. Date placed in service – the date when depreciation begins 3. Depreciation method – determines the calculation technique used 4. Associated recovery periods – the estimated life in years and months 5. Depreciable basis – sometimes referred to as cost or purchase price 6. Prior – amount of depreciation calculated from the service date through the previous

accounting period 7. Current – amount of depreciation in the current accounting period or periods 8. Total – sum of prior and current numbers 9. Net Book Value – the difference between the depreciable basis and total depreciation is the

remaining balance or NBV (Net Book Value)

A detailed depreciation can be run every month for the internal book schedule to get an accurate picture of the present value of your assets. This report can also be very useful at year end for the tax schedule.


Dispositions

The Disposition report displays all assets disposed between the selected period begin and end dates.

Below you can see a sample Disposition report:

The columns of this report include:

1. Asset Number – unique asset identifier 2. Asset Name – description of the asset 3. Acquisition Date – the date when the asset was acquired 4. Cost – purchase price of the asset 5. Disposal Date – the date the asset was disposed 6. Disposal Method – method of disposal (i.e. Sale, Retirement, etc.) 7. Proceeds of Sale – any money received for the disposal 8. Total Depreciation – sum of prior and current depreciation amounts 9. Calculated Gain/Loss – the difference between the cost minus any proceeds and total

depreciation


Depreciation Roll Forward The Depreciation Roll Forward report displays the opening balance and then the asset activity during the

reporting period. This means all the numbers are fluid and the report is read from left to right.

Below you can see a sample Depreciation Roll Forward report:

The columns of the report include:

1. Asset Number – unique asset identifier 2. Asset Name – description of the asset 3. Service Date – the date when the asset was placed in service 4. Depreciation method – determines the calculation technique used 5. Asset Cost – purchase price of the asset 6. Additions – cost of any asset acquired during the selected period 7. Disposals – cost of any assets disposed during the selected period 8. Closing Balance – asset cost plus additions minus disposals 9. Prior – amount of depreciation calculated from the service date through the previous

accounting period 10. Current – amount of depreciation in the current accounting period or periods 11. Disposal Depre – amount of depreciation disposed during the period 12. Total Depreciation – sum of prior and current depreciation amounts


Twelve Month Projection

The Twelve Month Projection report presents a twelve month view of your depreciation.

Below you can see a sample Twelve Month Projection report:

This report can be run in a summary format by asset type, class or other grouping. Additionally you can generate a detail display for each individual asset. The twelve month report period can be the current tax or accounting year for review. To estimate the depreciation expenses for an upcoming year, simply select a range of reporting dates in the future. You can then see the depreciation for each month in the selected year with an annual total.

The Twelve Month View report is a valuable budgeting tool for both the tax and financial depreciation schedules. This report will project the calculated depreciation amounts for all existing assets. You can then add in any anticipated purchases to plan your total expense amounts.


Five Year Projection The Five Year Projection report is based upon the current accounting year and forward. As with the

twelve month view that provides monthly depreciation, the five year projection report details annual

depreciation and is used primarily for budgeting purposes.

Below you can see a sample Five Year Projection report:

This report can be run in a summary format by asset type, class or other grouping. Additionally you can

generate a detail display for each individual asset. The five year projection report will estimate future

depreciation based upon your existing assets. To add to the projections, budget assets can be

established to account for anticipated purchases. You can then see the projected annual depreciation

for each year with a cumulative total. The five year projection report is a valuable budgeting tool for

both the tax and financial depreciation schedules.


Depre123 Depreciation Guide

Introduction The tax laws and accounting standards that apply to the depreciation of business assets are complex, confusing and difficult to decipher. Depre123 has been designed to make the complex task of depreciating your business assets as easy as possible by utilizing asset classes to ease data entry and validate that the data you have entered is correct.

Depreciation Schedules Depre123 has four standard depreciation schedules

1. The IRS Schedule

The information contained in this schedule pertains to the depreciation calculation required for filing your company’s federal tax return. During the addition of a new asset record, Depre123 will determine the depreciation method, first year convention and the recovery period based upon the selected asset class using IRS regulations.

2. The Financial Book Schedule

The financial book depreciation schedule provides the depreciation calculation required by your company’s internal accounting and financial reporting. As in the IRS depreciation schedule, the key calculation variables are determined by the selected asset class. The data validation procedure for the financial book depreciation schedule is based upon Generally Accepted Accounting Principles (GAAP).

3. Alternative Minimum Tax (AMT) Schedule IRS Code Section 57 defines the rules for calculating depreciation for the Alternative Minimum Tax, which was enacted as part of the Tax Reform Act of 1986.

1. State Schedule

Depre123 includes a state depreciation feature. The report selection form provides a drop down of purchased states. When a specific state is selected the depreciation calculation will be based upon that state’s specific income tax regulations.

Basic Depreciation Concepts

1. Depreciable Property

In general, depreciation is allowed on tangible and intangible property with a determinable useful life of more than one year that is used in a trade or business or held for the production of income and wears out, decays, becomes obsolete or loses value from natural causes.

2. Property Types

Personal property, under IRS Code Section 1245 includes all depreciable property other than real property.


Real property, under IRS Code Section 1250 includes buildings and their structural components. Cost segregation audit guides issued by the IRS, categorize an extensive list of building elements as either Section 1245 Personal Property or Section 1250 Real Property. Listed property, IRS Code Section 280 (F) lists both personal property, such as passenger automobiles, any property used as a means of transportation, computers unless used exclusively at a regular business establishment, and real property, such as entertainment or recreational property such as a vacation home as listed property. The depreciation deduction for listed property under ACRS and MACRS depreciation methods is limited under IRS Code. Listed Property must be used more than 50 percent for business use to be depreciated under MACRS GDS guidelines. Business use of 50 percent or less requires the asset to be depreciated under MACRS ADS guidelines. Luxury Automobiles (X): IRS rules limit the amount of depreciation that may be deducted annually for automobiles placed in service after June 18, 1984. This depreciation limit may be found in automobile depreciation limitation tables published by the IRS annually. An automobile with a three year recovery period will require eight to ten years to fully depreciate, as long as, the vehicle is still used for business beyond the original five year recovery period. Truck Chassis (T): Pick-up trucks, SUVs and vans built on a truck chassis with a gross vehicle weight rating of less than 6,000 pounds Leased Assets (L): Within Bassets® eDepreciation® Software, this property type should be used by the taxpayer to track an asset that is not owned by the taxpayer, but is leased for use in the taxpayers business from the actual owner of the asset.

3. Acquisition and Service Date IRS rules define when an asset is placed in service and depreciation of the asset may begin. An asset is considered to be placed in service when it is first placed in a condition or state of readiness and availability for a specifically assigned function. Since the date of acquisition and the service date may be different for a specific asset, Depre123 provides the user with the ability to enter both dates for an asset record.

4. Depreciable Basis The basis of an asset for depreciation is the same as its adjusted basis for determining gain on the sale or other disposition of an asset.


5. Useful Life

Depreciation is allowed on tangible and intangible property with a useful life (Recovery Period or Amortization Period) of more than one year. Revenue Procedure 87-56 (IRS Recovery Period Table for MACRS) details the applicable recovery period by asset type or class. Generally Accepted Accounting Procedures (GAAP) allows for any reasonable recovery period that reflects the useful life of a class or type of asset subject to reasonable wear and tear that is applied consistently to that class or type of asset in a given tax year.

6. Averaging Convention

The Averaging Convention, referred to as the First Year Convention in Depre123 determines the amount of computed depreciation during the tax year of acquisition and disposition that is deductible.

Documents

Depre123depre123.com/wp-content/uploads/2015/04/Depre123-User... · 2015. 4. 7. · 3/26/2015 Page | 7 Depre123 User Guide.docx Individual Asset Record From the Manage Asset form