Entering an Asset - Values Card
This page describes the fields on the 'Values' card in the Asset record. Please follow the links below for descriptions of the other cards:
---
- Residual Value
- If some of the value of the Asset is not to be depreciated, enter that portion here.
- For example, an Asset was purchased for 1000.00. Enter 1000.00 as the Purchase Value on the 'Purchase' card. The Residual Value is 200.00, so enter 200.00 here. When depreciation is calculated, the basis for the depreciation calculation will be taken to be 1000.00 - 200.00 = 800.00. This applies whether the Depreciation Model is Straight Line or Declining Balance. The Residual Value will not be taken into account when calculating the net book value of the Asset at the end of the depreciation period (i.e. the net book value at the end of the first year will be 1000 minus the depreciation).
- If the Quantity on the 'Owner' card is greater than one, this field should contain a figure for the Residual Value per unit, not the total Residual Value.
- If you need to change the Residual Value, do not do so here and instead enter a record in the Revaluation register: this will ensure an accurate history is maintained for the Asset, that depreciation continues to be calculated accurately and that past depreciation will be shown correctly in reports.
- Insurance Value
- Enter the insurance value of the Asset. In the case of an Asset that you created from a Purchase Invoice row, this figure will be taken from the Amount field in the Purchase Invoice row (divided by the Quantity on flip B). If you created the Asset from an entire Purchase Invoice, the Insurance Value will be the Purchase Invoice value excluding VAT. This figure will be used by the Insurance Value report.
- Min. Value
- This field is used in Portugal, where there is sometimes a statutory maximum price that can be paid for an Asset. For example, the statutory maximum price for a car might be 29930. If you purchase a car for 39900, enter 39900 as the Purchase Value and 29930 as the Minimum Value. The car will be depreciated as normal, using 39900 as the basis for the calculation. The extra price over and above the statutory maximum (39900 - 29930 = 9970 in the example) will also be depreciated using the standard depreciation rate: this depreciation figure will be shown in the Fiscal Year Depreciation report as a non-fiscal cost (column 15).
- Subsidy Value
- Please refer to the description of the Contract No. field on the 'Purchase' card for details about this field.
- Land Value
- If the Asset is a building, its value will usually be made up of two components: the building itself and the land. Usually, the land component should not be depreciated, so you should enter its value here. This value will not be depreciated: it will be treated in a similar manner to the Residual Value, and the example given in the description of the Residual Value can be used for the Land Value as well. The Residual Value and Land Value will be shown as separate figures in the Asset Status report.
- If you need to change the Residual Value, do not do so here and instead enter a record in the Revaluation register: this will ensure an accurate history is maintained for the Asset, that depreciation continues to be calculated accurately and that past depreciation will be shown correctly in reports.
- Investment Value
- In some countries such as Portugal, if an Asset is sold for a profit and that profit is invested in another Asset, the payment of tax can be delayed. If that situation applies to this Asset, enter the amount reinvested here.
- This Investment Value will be shown in the screen version of the Fiscal Year Depreciation report (column 9). Depreciation of the Investment Value calculated using the standard depreciation rate for the Asset will also be included in the calculations in the Fiscal Year Write-offs report (columns 9, 10, 12 and 13).
- Fiscal Value
- If the Asset is a building, you should record its fiscal value (rateable value) can be recorded here. In most cases, this will be for information only, but you can choose when calculating depreciation to base the calculation on the Fiscal Value of each Asset instead of on its Purchase Value. This figure will also be shown in the Asset Status report.
- If the Quantity on the 'Owner' card is greater than one, this field should contain a figure for the Fiscal Value per unit, not the total Fiscal Value.
- Investment Date
- Paste Special
Choose date
- If there is an Investment Value (above), enter the date of investment here. This is recorded for information only.
---
The Asset register in Standard ERP:
Go back to:
