The Define Property Types task enables you to define classifications that determine how depreciation values are calculated. Each classification, or depreciation property type, specifies a depreciation method and a depreciation period. To calculate depreciation for particular furniture and equipment assets, you must assign a property type to each asset.
From Web Central, the Define Property Types task presents a Web form to enter and update data; from the Smart Client the task is shown in a grid view. Grid views are the most efficient method when doing bulk updates. The following procedure are applicable to both tasks.
To define property types:
From the Smart Client, click in the first row of the grid to add anew record.
The Property Type pane shows the fields for the new property type.
Field | Purpose |
Property Type | Uniquely identifies each depreciation property type. Complete this field with a descriptive name of the depreciation property type, such as ARTWORK, OFFICE EQUIPMENT, or OFFICE FURNITURE. |
Depreciation Method | Choose a depreciation method from the validating list. For items that depreciate, choose Straight-Line, Sum-of-Years-Digits, or Double-Declining Balance. If the item appreciates, choose Percentage. |
If the Depreciation Method field tracks depreciation (the Straight Line, Double-Declining Balance, or Sum-of-Years methods), complete this field with the number of months it takes for the item to depreciate. If the item appreciates (such as a painting) and has a Depreciation Method of Percentage, complete this field with the yearly percentage appreciation; for example, a value of 10 adds ten percent to the value of the item each year. |
From Web Central, click Save.
From the Smart Client, click outside the row to save the data.
Next Steps
After defining property types, you assign these types to tagged furniture and equipment assets so that you can track depreciation for these assets. Use the Edit Equipment and Property Type task to do so.