You can forecast fixed asset purchases
using subledgers, and the depreciation expense of those acquired assets is calculated
automatically in the application.
Your administrator must set up fixed asset depreciation settings in your what-if model to
activate this functionality.
Tip: When forecasting a fixed asset
account, create a separate subledger for each future purchase within the forecast
period.
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Select from the menu.
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Select the Account Type that you want to forecast.
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Select a fixed
asset account that you want to add a subledger to from the Account
drop-down list.
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Select .
The Add Subledger page
opens.
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Enter the Name of the fixed asset purchase.
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Select Protect, if needed.
This option prevents other users from viewing and/or changing confidential
information.
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Enter an Amount of the new asset.
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Select the Start Month to indicate when the purchase occurred
and depreciation begins.
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Enter the Salvage Value.
The amount that you enter is the estimated value of the asset when it is
sold or disposed of.
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Enter an Average Life in years for the asset.
The Depreciation Account and
Depreciation Method fields default to the options that the
administrator selected and cannot be changed.
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Select Add.
The new subledger account appears under the fixed asset account.
A subledger is also created automatically that is titled
Existing - [Name of Existing Subledger]. It includes any
previous forecasted balance for the fixed asset account.
You can view the depreciation calculation by selecting the
Non-Interest Income/Expense option for Account
Type, and then selecting the applicable depreciation expense account. The same
subledger accounts added to the balance sheet appear here as well.
The subledger account shows the amortization based on the information entered
when adding the subledger (new purchase). If the depreciation account previously contained
any values, then these values appear automatically in a system-generated subledger that is
titled Existing - [Name of Existing Subledger].
