Definitions

Asset

One or more Assets can be assigned to each Asset Type. The individual assets are a unique item of a specific make and model number. Each asset is given an Asset Tag that is unique across all Sites and Locations.

Asset Linking

Asset Linking, also known as Asset Kitting, allows you to link two or more assets together to form one new asset.

Asset Tag

A unique identifier you assign each asset in your database (this is done on the New Asset screen). The tag can be letters or numbers or a combination of both. The asset tag is printed and attached to the physical asset. The number on the tag corresponds to the asset tag number in the database. An asset tag usually contains a barcode for quick identification and tracking.

Asset Type

This is the first step in creating an Asset in the software. You must first create your Asset Types, then each asset you add to the system must be assigned to a specific Asset Type. You can think of Asset Types as a classification for assets. Asset Types are created in the database using the New Asset Type screen, or you can import this information. You can then assign assets to a specific asset type on the New Asset screen.

The Asset Type defines the Description, Depreciation Class, Category, Manufacturer and Model Number of the asset.

Description can be any text used to describe the Asset Type.

Depreciation Class controls whether or not depreciation will be calculated for this Asset Type (Depreciation Class is further defined below).

Category is a superset of the Asset Type.

Manufacturer records the brand or maker of the Asset Type.

Model # records the manufacturer's designation for this Asset Type.

Depreciation Class

Depreciation Classes can be created to determine a specific Depreciation Method. The Depreciation Class is assigned to one or more Asset Types (on the New Asset Type screen). All assets assigned to that Asset Type will follow the Depreciation Method defined in the specified Depreciation Class.

Depreciation Methods

You have six depreciation methods to choose from:

•Straight Line - The simplest and most commonly used depreciation method, straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years (Life) the asset can be reasonably expected to benefit the company.

•Double Declining Balance - The double declining balance depreciation method is similar to the straight-line method. To use it, the system first calculates depreciation as if it were the straight line method. Then it determines the total percentage of the asset that is depreciated the first year and doubles it. Each subsequent year, that same percentage is multiplied by the remaining balance to be depreciated. At some point, the value will be lower than the straight-line charge, at which point, the double declining method should be scrapped and straight line used for the remainder of the asset’s life. Remember that the IRS does allow businesses to switch depreciation methods one time in the life of an asset. Rosistem Assets will not make this switch for you. It is up to the individual business to keep track of when the switch to straight line depreciation should be made.

•150% Declining Balance - This method uses 150% of the straight-line percentage for the first year. The same percentage is then applied to the remaining balance, each succeeding year.

•Declining Balance Custom - This method allows you to enter a custom declining balance percentage. Declining Balance is a common depreciation-calculation system that involves applying the depreciation rate against the non-depreciated balance. Instead of spreading the cost of the asset evenly over its life, this system expenses the asset at a constant rate, which results in declining depreciation charges each successive period.

•Sum of the Years' Digits - To calculate depreciation charges using the sum of the years' digits method, take the expected life of an asset (in years) count back to one and add the figures together.

Location

Locations are places within a particular Site where Assets reside. Typically, a Site is a building or area that contains one or more inventory Locations.

Child Asset

An asset that is linked to a parent asset.

Parent Asset

Any asset that has child assets attached to it.

Serial Number

If an asset has a Serial Number and you choose to record it, it is associated with a specific Asset, not with an Asset Type.

Site

The software can manage assets at one or more Sites (specific buildings or vehicles). Typically, a Site is a building that contains one or more asset Locations.