A-7 from the main menu

 

In order to calculate depreciation, you must have Depreciation Codes and Depreciation Types set up and assigned to purchase records in the Rental File.  The purchase records in the Rental File will also need all appropriate cost and other purchase information entered.

 

Once setup is complete, On a MONTHLY basis, you will need to calculate depreciation. To do this, go to A-7 from the main menu. You will be prompted for an ending date which should represent the last day of the month you are calculating depreciation for. You may either calculate depreciation for one location by selecting the location from the store field, or you may leave this field blank to calculate depreciation for all locations.

 

Click on the calculate button once you have entered the proper date and location information. You will be presented with a pop-up window when the calculation is complete. Upon completion, you may preview or print a report showing the depreciation information that was calculated.

 

If you click on the "Post It" button, the rental file will be updated with this depreciation information.

 

hmtoggle_arrow1How to set up depreciation

 

FocalPoint allows you to calculate depreciation for rental items. You must set up depreciation codes, depreciation types, and adjust your rental items appropriately before you can calculate depreciation. Please note that FocalPoint will not export this information to your third-party accounting software. However, you do have the ability to print out calculated depreciation and enter this information into your accounting software. Further, as you calculate depreciation on a monthly basis, this information will be automatically posted into the rental file for historical reference.

 

Depreciation Codes File

3-E  from the main menu

 

When setting up rental item purchase records, you have the ability to assign a depreciation code to the item.  Depreciation Codes allow you to specify the Depreciation Expense and Accumulated Depreciation accounts to be used when calculating depreciation.  FocalPoint does not export depreciation, but these accounts will be used for reporting purposes.

 

The Posting Code ID field is an inaccessible internal number.

 

Enter a meaningful “Description” for this depreciation code.  This description will be used for selection in the Rental File.

 

Then select the “Depreciation Expense Account” and the “Accumulated Depreciation Account” from the appropriate drop down lists.  These accounts will need to be already set up in your general ledger chart of accounts.

 

Finally, with the “Active” field enabled, the depreciation code will be available for selection within the equipment file.

 

Depreciation Types File

3-F from the main menu

 

You set up depreciation types to later assign to purchase records within the rental file.  When entering this file, you will be presented with a depreciation types list screen showing all of the depreciation types already in place.  You may double click on any item in the list to edit the depreciation type record.  To add a new depreciation type, click on the Add New Depreciation Type Record button.

 

For the “Description” simply describe the depreciation type.  Examples may be "STRAIGHT LINE 5 YEAR", "MACRS 3 YEAR HALF-YEAR CONVENTION", and so on.

 

Then select the appropriate “Depreciation Type” from the drop down list.

 

Then select the appropriate “Depreciation Convention” from the drop down list.

 

Select the Class Life for this depreciation type from the drop down list.

 

Enable the “Active” field if this depreciation type should be available for selection within the Rental File.

 

Normally the answers to the “Percentage per year” fields are available from similar tables from the IRS or your accountant.  There are enough percentage fields available for 21 years, broken in to two columns.  Enter the percentages in the fields as appropriate.

 

Equipment File

2-2 From the Main Menu, Purchase History Tab

 

Double click on the purchase record that you would like to set up depreciation for.  You will see a "Depreciation Information" section on the bottom half of the Rental Purchase Screen.  Fill in the fields as noted below

 

Depreciation Type

Select the depreciation type from the drop down list.

 

Depreciation Code

Select the depreciation code from the drop down list.

 

Accumulated Depreciation

Enter the amount of depreciation already incurred against this item.

 

Depr Begin Date

Enter the date to begin depreciation the rental item.

 

Base Price

Enter the amount that will be depreciated.  This will be the amount (less any salvage value) that is depreciated.  Be sure to include both purchase costs and acquisition costs as dictated by your accounting practices.

 

Salvage Value

Enter any salvage value for this item in this field.  This amount will be subtracted from the base price when calculating depreciation.

 

Accum Credits

This field is for historical information only.

 

179 Exemption

This field is for historical information only.

 

Book Value

This value is for display only, and is automatically recalculated each time depreciation is calculated.