Book Records - BAM3000

Asset Management > Maintenance > Inventory Maintenance > Book Records

This tab is used to define how depreciation should be calculated for an item by defining the property class, depreciation method, recovery period, and depreciable amount for only capital assets (inventory type C). There is currently only one book type, Generally Accepted Accounting Procedures (GAAP or GP) that uses the Straight Line (SL) and No Depreciation (ND) methods. A warning message is displayed if no record exists for capital items. The following fields are required for depreciation calculations:

  • Property Class
  • Date In Service
  • Deprec Method
  • Recovery Period
  • Convention

A new book record is automatically created when a new inventory capital asset record is created on the Inventory Records tab.

Add or modify a book record:

Retrieve an existing item.

In the Item Nbr field, type the item number to be retrieved, if known. If the number is less than ten digits, the field is auto-filled with leading zeros.

Click Retrieve.

• If the item number is not known, click Directory.
• To search for a specific item number, type data in one or more of the search fields.
• To search through all available data, leave all fields blank.
• Click Search. A list of item numbers matching the search criteria is displayed.
• Select an item number from the list. Otherwise, click Cancel.

❏ Click +Add to add a record.

Field Description
Item Nbr and DescriptionThe item number is displayed.
Description The item number description is displayed.
Book TypeClick Drop-down Arrow to select the book type (e.g., GP - GAAP (Generally Accepted Accounting Procedures)). The field is required for depreciation calculations.
Property ClassClick Drop-down Arrow to select the property class description. The field is required for depreciation calculations.
Date In ServiceType the date that the record was entered into the system in the MMDDYYYY format. If entering a new record, this field is populated from the Acquired Date field on the Inventory Records tab, or you can override with a different date. The field is required and is used for inventory validation to maintain accurate depreciation calculations.
Deprec Method

Click Drop-down Arrow to select a valid depreciation method code. There are only two depreciation methods available:

• Straight Line (SL) - SL depreciation only. Uses the two conventions available, Full Month (FM) and Half Year (HY).

• No Depreciation (ND) - Used for land or other assets that do not lose value.

• If left blank, the field is populated from the property class record.


CAUTION: If the depreciation method for an inventory item is changed from Straight Line (SL) to No Depreciation (ND), the following message is displayed, “Warning: When saved, any depreciation history is deleted. Do you wish to continue with this change?” Click Yes to change the depreciation method and delete the depreciation history. Since all depreciation history records for this inventory item are deleted with this change, it is strongly recommended that the user create a system backup before saving this change. Click No to disregard the change. The depreciation method is not changed, and the depreciation history is not deleted.

The field is required for depreciation calculations.

Recovery Period

Type the number of years required to fully depreciate the item. The field is required for depreciation calculations.

If assets are to be depreciated using partial years, the months should be converted to a decimal value (e.g., 3 months = .25, 6 months = .50, and 9 months = .75).

If left blank, the number is populated from the property class record.

Deprec Cost

Type the depreciable cost of the item. If adding a new record, the field is populated from the Total Cost field on the Inventory Records tab. A negative depreciation cost can be entered. If the salvage value is not zero, the depreciation cost is negative, and the salvage value is greater than the depreciation cost, a warning is issued, and the user can save the record.

When a transaction record is added, the Deprec Cost field is updated with the new amount.

Adjusted Basis

This amount is calculated as follows: Adjusted Basis = Depreciable Cost - Salvage Value.

When a transaction record is added, the Adjusted Basis field is updated with the new amount.

Convention

Click Drop-down Arrow to select a valid convention. The field is required for depreciation calculations. If left blank, it is populated from the property class record.

• Full Month (FM) – Calculate depreciation after the first full month.

• Half Year (HY) – Calculate depreciation as half or full year for the first year, depending on the acquisition date.

Salvage ValueType the estimated value that the asset will be sold for at the time of disposal.
Gain/Loss AmtThe amount of gain or loss due to asset disposal is displayed. This field is automatically calculated when all necessary fields are populated.
Unallocated Funds Select if the asset is used by many diverse groups and cannot be attributed to a specific budget code (e.g., cafeteria). By doing this, depreciation distribution account codes are not required. The asset will also be reported in the unallocated deprecation line on the financial statements produced by the depreciation calculation process.
Business PctType the percentage of asset usage that should be applied (e.g., a district vehicle used for 85 percent business and 15 percent personal use by a superintendent). The amount cannot exceed 100 percent.

❏ Click Save.

Other functions and features:

Retrieve

The Retrieve button is also used to retrieve information from the last save. If you click Retrieve, any unsaved changes are lost.

DocumentsView or attach supporting documentation.