The new financial system tracks asset values and starts depreciation for an asset once asset is in use.

In This Article:

  • How Asset Management handles depreciation
  • Deviations and recalculations based on condition
  • Financial reporting
  • In-house asset depreciation

The Asset Management Module calculates depreciation for the whole useful life based on the Profile ID. The profile ID is a template that stores standard depreciation criteria for a type of asset and the corresponding asset books for defaulting. Profiles determine all related accounting and depreciation information. For example, a car with 5 year depreciation versus truck with 6 year. City Policy only uses the straight-line method for depreciation.

The depreciation can be altered for a single asset. The depreciation attributes—useful life, convention, method, etc.—for an asset can be changed on the Book page of the asset. Catch-up depreciation will be calculated in the current period. If users adjust the useful life, the system will recalculate the remaining depreciation. For example, leases and associated increases/decreases can be adjusted during their lifetime.

For external financial reporting requirements/grant regulations, it is possible to record depreciation for assets with different lives using different asset books. This is not a system limitation, but rather requires a policy determination.

For assets or property that is created by the city (e.g. software developed in house), it is possible to set the depreciation for those types of assets. Users would set up the project to capture the detail so that it can be pushed to Asset Management and depreciated.