Ownership/Depreciation (Fleet Equipment) |
Note: Linear assets do not display on this screen. Use the Data -> Equipment Units -> Linear Assets -> Primary Information screen.
The Ownership/Depreciation tab enables you to display and define data related to the ownership and depreciation of equipment units.
Tip: To limit the display of information in the grid and maximize performance, use the filter. You can search on equipment ID, serial number, asset category ID, SLA equipment category, assigned repair location ID, and department ID, among other values. The list of searchable fields on the filter is extensive; use the scroll bar to view them all.
Note: Filtering data based on fuel/fluid type uses the information in the Supported fuel/fluid types screen group on the Codes tab.
The Fleet Equipment screen supports location level and department-level access control, so you must belong to a user group with the applicable authorizations to make changes or updates.
The field in the top section of this tab defines the data that displays.
Equipment ID
Identifier of the equipment unit currently selected in the grid or that you are defining. This field has a list box. The equipment unit year, manufacturer, and model display to the right of the ID.
When you insert an equipment unit with an asset category that supports automatic numbering and this field is blank, The system generates an equipment ID that follows the format specified in the Custom ID structure field on the Data -> Equipment Units -> Setup -> Asset Categories screen. If you specify an ID and the equipment’s asset category supports automatic numbering, the ID is not overwritten.
Whether an asset category supports automatic numbering is specified on the Data -> Equipment Units -> Setup -> Asset Categories screen.
New equipment unit
Press the New equipment unit button to activate the New Equipment Wizard, which steps you through entering the basic data elements associated with a new equipment unit.
The data in the fields in the bottom section of this tab define the ownership and depreciation information. Unless otherwise indicated, these fields are required.
Depreciation method
Depreciation method for this equipment unit. In insert or update mode, this field has a list box. The default value for this field are specified on the Data -> Equipment Units -> Setup -> Options screen. Depreciation is computed during end-of-period processing. This field is optional.
The methods supported, and the processing choice that computes depreciation for each method, are as follows:
CANADIAN DECLINING
NONE
Depreciation
The following fields, which are used for depreciation, are optional.
Life months
Number of months to represent the life of the equipment unit. If the Depreciation method field specifies STRAIGHT LINE, depreciation is calculated on only those units for which this field has a value other than zero. If the Depreciation method field specifies any other value, this field is not used in the calculation.
Months remaining
Number of months remaining from the Life months field. If the Depreciation method field specifies STRAIGHT LINE, depreciation is calculated on only those units for which this field has a value is other than zero, and this value is decremented each month. Depreciation stops when this value reaches zero. If the Depreciation method field specifies any other value, this field is not used in the calculation.
Salvage value
Salvage value to remain after full depreciation of the equipment unit. If the Depreciation method field specifies STRAIGHT LINE and there is a value in the Life months field, the unit is depreciated to zero salvage value. If the Depreciation method field specifies any other value, this field is not used in the calculation.
Salvage value pct
Percentage of original cost to treat as salvage value. Salvage value percent is used for end of year calculations, and not for regular depreciation calculations. Refer to the Computation of Replacement Cost page to see how this is calculated.
Current declining balance
Current value of the declining balance for the unit. This information is used only if the Depreciation method field specifies BRITISH DECLINING.
Accumulated depreciation
The sum of all months of depreciation. This field is display only.
Daily depreciation
The value of the daily depreciation. This field is display only.
Ownership
This field has a list box:
OWNED: Depreciation is computed on the equipment unit and the appropriate Labor and Parts/Internal markup percentages are used to calculate labor and parts charges. This is the default.
LEASED: If there is a value in the Monthly rent field, accumulated lease rent expense is computed and retained.
CUSTOMER: Equipment unit is owned or operated by a customer but maintained or repaired in shops on the organization’s premises.
A work order must be created as an estimate before updating with actual posted costs.
On the Shop Activity - Setup - Options screen, Rates and Markups tab, the On work for outside customers keep costs billed to customer option decides how the labor rate is calculated for ownership.
SEPARATE FROM (and the work order is an estimate): The base rate is the task/class hourly rate. The labor overhead percent is set as follows: If the overhead location is Y, then the outside labor overhead is used by location, otherwise, this uses the system outside labor overhead.
TOGETHER WITH: The base rate is the task/class hourly rat. Note: this base rate is used only if there is not a flat task rate. If there is a flat task rate, that rate is used. The labor overhead percent is set as follows: If the overhead location is Y, then the outside labor overhead is used by location, otherwise, this uses the system outside labor overhead.
Lease ID: Identifier of the lease associated with the equipment unit. This field has a zoom button to the Data -> Equipment Management -> Lease Agreements screen. When you enter information in this field, information on the Lease Agreements screen us used to take the following actions:
Display the Default monthly payment amount from the Payment Info tab of the Lease Agreements screen, if specified, in the Monthly rent field.
Add the Number of months in lease term on the Basic Info tab of the Lease Agreements screen to the date in the In service date/Actual field on the Acquisition tab of this screen and displays the result in the Lease expiration date field.
Monthly rent: Total monthly rent for this unit. When you enter information in the Lease ID field, this field displays the amount from the Default monthly payment amount field on the Payment Info tab of the Lease Agreements screen, if specified. If the Ownership field is set to LEASED, monthly costs are automatically computed for the next month during each end-of-period monthly processing. This field is optional.
Lease expiration date: Expiration date of the lease. If there is information in the Lease ID field, the Number of months in lease term on the Basic Info tab of the Lease Agreements screen is added to the date in the In service date/Actual field on the Acquisition tab of this screen and the result displays in this field. This field is optional.
Lease expiration meter: Number of meter units in the lease term for leased equipment. When a lease ID is specified, this field auto-populates with the sum of meter units at delivery plus the number of meter units in the lease term. You can change the value. This field is optional.
Note: This data does not stop lease payments from being charged each month. It is available for exception reporting.
Residual value: Projected value of the equipment unit at the end of the lease.
Age in months
Age of the equipment in months (equal to current date minus in-service date divided by 30). If the equipment has been sold, the age is calculated as the difference in months between the disposition date and the actual in-service date. If the equipment does not have an in-service date, this field remains blank. This field is display only.