|
|
AM02.1 - Methods
**Form Purpose
Use Methods (AM02.1) to define the methods that asset books use for
calculating depreciation, replacement cost, and insurance values. Lawson
provides six standard depreciation methods and lets you define your own as
well.
If you select the Straight Line (SL) depreciation optimizing method, you must
indicate the Straight Line calculation. If you leave this field blank, the
default calculation is used. See More Help for calculation options.
**Processing Effect
Methods can calculate depreciation in one of three ways: compute statements,
annual percent tables, or units of production (UOP) tables (annual or by
period).
- If your method uses a compute statement, you can also select an
optimization method. The Asset Management system will switch to the
optimization method whenever it is advantageous to the company, if the book
that uses the principal method is defined with the Method Switch field set to
Yes.
- If your method uses a UOP annual table, you must enter actual UOPs at the
end of each year. The system uses the actual UOPs for its calculations. If the
asset life is more than 13 years, you must continue defining the method on the
UOP Table Yr 14-26 form tab. The system keeps track of the total estimate
units.
- For each year that you define on the UOP Table form tabs, you can choose
the Periods button to define depreciation calculations by period.
**More Information
If you select the straight-line depreciation method, you must select one of
the following calculations to derive the depreciation values:
- 'blank', Default: If you leave this field blank, when the SL value
calculated using current remaining values exceeds the value calculated by the
current method, AM switches to using the depreciation method of calculation.
The actual calculation shall use the SL value calculated based on remaining
asset values.
- O, Original: An 'O' indicates that the switch occurs when the SL value
determined from original asset values exceeds the value calculated by the
current method. The actual SL calculation shall use this original SL value to
continue depreciating the asset.
- M, Mixed: An 'M' indicates that the switch occurs when the SL value
determined from original asset values exceeds the value calculated by the
current method. The actual SL calculation shall then be based on straight line
calculations using current remaining values.
- N, not applicable: An 'N' indicates that the SL Classification field is not
applicable to the method switch.
Once this method is created and assets have begun depreciation, you should
not modified the SL Classification selection. If the SL classification flag is
modified while assets are past the optimization switch point, depreciation
amounts would be affected.
Updated Files
AMCOMPUTE - Used to store the Lawson-defined compute statement methods
(straight line; 125, 150, 175, and 200 percent declining
balance; and sum of the years digits) and optional user-defined
methods.
AMMETHOD - Primary file. Used to store the Lawson-defined and optional
user-defined methods that asset books use to calculate
depreciation, replacement cost, and insurance values.
AMTABLEPCT - Used to store user-defined percent table methods that asset
books use to calculate depreciation, replacement cost, and
insurance values.
AMUOPPDS - Used to store user-defined annual and period units of
production table methods that asset books use to calculate
depreciation, replacement cost, and insurance values.
Referenced Files
AMDICT - Used to store data dictionary names which are used to create
compute statements.
AM02.2 - Units of Production Table Periods
**Form Purpose
Use U O P Table Periods (AM02.2) to maintain estimated and actual units of
production by period. You can define up to 55 periods, divided into three
sections. You can define depreciation calculations by period for each year
that you define on the UOP Table form tabs on Methods (AM02.1).
**Processing Effect
UOP depreciation calculations by period let you choose one of three period
conventions:
- If you select Actuals or Estimate (AE), the system calculates depreciation
using the actual number of units produced for the period over the blended
number of actual and estimated units produced in its lifetime.
- If you select Actuals Only (AO), the system calculates depreciation using
the actual number of units produced for the period over the total number of
units the asset is estimated to produce in its lifetime.
- If you select Estimates Only (EO), the system calculates depreciation using
the estimated number of units produced for the period over the total number of
units the asset is estimated to produce in its lifetime.
Updated Files
AMCOMPUTE - Accessed by common library; not used by this program.
AMMETHOD - Primary file. Used to store the Lawson-defined and optional
user-defined methods that asset books use to calculate
depreciation, replacement cost, and insurance values.
AMTABLEPCT - Accessed by common library; not used by this program.
AMUOPPDS - Primary file. Used to store user defined annual and period
units of production table methods that asset books use to
calculate depreciation, replacement cost, and insurance values.
Referenced Files
AMDICT - Accessed by common library; not used by this program.
|
