Forecasting a Fixed Asset Purchase Using Subledgers

You can forecast fixed asset purchases using subledgers, and the depreciation expense of those acquired assets automatically calculates in the application.

1. Navigate to Forecasting > Detail.
2. Select a fixed asset account that you want to add a subledger to.
3. Select Add Subledgers.
   An Add Subledger window appears.
4. Enter the Name of the fixed asset purchase.
5. Select either Yes or No to Protect the subledger.
6. Enter an Amount of the new asset.
7. Select the Start Month to indicate when the purchase occurred and depreciation begins.
8. Enter the Salvage Value.
   What you enter here is the estimated value of the asset when it is sold or disposed of.
9. Enter an Average Life in years for the asset.
   The Depreciation Account and Method fields default to the options that the administrator selected and cannot be changed.
10. Select Save.

    The new subledger account appears under the fixed asset account and the dollar amount appears in the start date.

    In addition, a subledger is also created automatically, titled Existing - [name of existing subledger]. It includes any previous forecasted balance for the fixed asset account.

    
    

    

    
    

The depreciation calculation can be viewed by selecting Non-Int Inc/Exp, and then selecting the applicable depreciation expense account. The same subledger accounts added to the balance sheet appear here as well.

The subledger account displays the amortization based on the information entered when adding the subledger (new purchase). If the depreciation account previously contained any values, these values automatically appear in a system-generated subledger, titled Existing - [name of existing subledger].