The Depreciation Books table allows you to set up as many different depreciation books as you want. A depreciation book contains all the financial information required to depreciate assets. You can set up different depreciation books for different purposes. For example you may wish to depreciate assets differently for tax requirements, insurance requirements or some other reason. An asset can have different depreciation information in each book.
At least one active depreciation book must exist at all times, and Pinnacle will enforce this. A depreciation book will exist in new Pinnacle databases, called "Default Book". This book is the default depreciation book. You can change the name of this book to suit your organisation. It will not be flagged as a tax book, but will be flagged as active. No special processing rules apply to this book.
The Depreciation Books table has several different tabs for recording information about a depreciation book. The tabs are: Depreciation Books, and Asset Types.
The Depreciation Books tab allows you to set up your list of depreciation books. You can record the following information about a depreciation book:
Book Name - This is the name of the depreciation book. You must enter a book name, and the name must be unique.
Tax Rules - This indicates whether the depreciation book will have taxation rules applied to it.
Active - This indicates whether the depreciation book is active.
The Asset Types tab displays the default depreciation information for each asset type in the selected depreciation book. The default depreciation information is the information assigned to an asset of the asset type when the asset is first added. You can change the depreciation information for an asset on the actual asset itself. You can also change the default depreciation information for an asset type from the Asset Types table.
The Asset Types tab shows the following information:
Asset Types - This is the asset type that the depreciation information is displayed for.
Depreciation Method - This is the default depreciation method for new assets of the selected asset type in the current depreciation book.
Depreciation Rate - This is the default depreciation rate for new assets of the selected asset type in the current depreciation book.
Is Depreciable? - This indicates whether new assets of the selected asset type are depreciable by default in the current depreciation book.
Residual Value - This is the default residual value for new assets of the selected asset type in the current depreciation book.
Any depreciation books that have been flagged as a tax book have special processing rules applied to them in order to meet taxation requirements. These special tax rules are:
The taxation year start date is used rather than the financial year start date when calculating the written down value of assets. The taxation year start date is defined on the Assets Module Defaults Window.
A special access right, Adjust Tax Book Values, is required in order to make any adjustments to values in tax books.
Assets cannot be revalued within a tax book.
There will usually be no need to define more than one tax book. However Pinnacle does not place any restrictions on the number of depreciation books flagged as tax books.
In order to simplify the setting up of new depreciation books, Pinnacle allows an existing book to be copied.
Open the Depreciation Books table
Highlight the depreciation book you want to copy.
Select Copy Book from the File menu
OR
Choose Copy Book from the popup menu.
Type in the name of the new depreciation book.
Click the OK button.
Pinnacle will create the new depreciation book. The default values for the new depreciation book will be copied from the original book. If an inactive book is copied, Pinnacle will just copy the default depreciation rates and methods from the original book. If an active book is copied, the default depreciation rates and methods will be copied, and in addition, all the asset details in the original book including any revaluations or other adjustments will be copied.
Please note that copying a book may take quite some time, particularly for an active book, as asset depreciation values will need to be inserted into the new book for every asset in Pinnacle.
Asset Financial Adjustments Tab
Changing Depreciation Rates for Asset Types