Unit depreciation schedule types

Depreciation schedule types must exist before actual schedules can be created. The schedule types group assets together to depreciation as a group according to Revenue Canada or IRS guidelines.

1. At the Asset Management main menu, select Equipment | Unit Depreciation | Schedule Types. The Depreciation Schedules Types display screen appears.
2. Click Add . The Add Depreciation Schedule Type enter screen appears.
3. Fill in the fields as required.

   Schedule Typeis a code identifying a particular type of depreciation schedule.

   Active Statusidentifies whether the depreciation schedule is active or inactive. It defaults to active for a new schedule type. You can click on the Prompt button to select the flag from a list.

   Descriptionis a short description of the depreciation schedule type.

   Depreciation Frequencyidentifies how often the schedule should be run: annually or monthly. You can click on the Prompt button to select the frequency from a list.

   Depreciation Methodidentifies whether the schedule will be applied as declining balance or straight line depreciation. You can click on the Prompt button to select the method from a list.

   CCA Classis the capital cost allowance class code, if applicable.

   Apply Half Year Ruleflags whether or not to apply the half-year rule to the first year's depreciation. This would be set to Yes if the depreciation schedule type is to track capital cost allowance and the class has a half-year rule applicable. The field is currently informational only.
       The half-year rule generally applies to any capital item purchased in a year in Canada or in the second half of the year in the U.S. When calculating depreciation for taxation purposes, an asset purchased at a certain point in the year (or any time of the year in Canada) is valid for only a 1/2 year's worth of depreciation in the year of purchase; the other 1/2 year is pushed to the end of the depreciation schedule. For example, an asset purchased for $10,000 in 2005 that depreciates at $2,000 per year will depreciation at $1,000 in 2005, $2,000 in each of 2006, 2007, 2008, and 2009, and $1,000 in 2010.

   Allow Overrideflags whether or not the user can override the depreciation schedule type's fields when adding a schedule.

   Customer Scheduleflags whether or not this is a customer schedule; i.e. the numbers reflect a markup and the rate that was agreed upon with a customer in striking a deal.

   G/L Postingflags whether or not this is a "book" schedule that is postable to general ledger accumulated depreciation and depreciation expense accounts. If No, the schedule is non-postable.

4. Click Enter to save the schedule types.

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