Why:
Used vehicle depreciation is calculated in accordance with the depreciation tables set up in the control files.
Calculation of depreciation values and the Depreciation Proposal Report are usually run once a month, at month-end, but can be run at other intervals provided you don't include the same dates more than once.
The posting option updates the actual cost file and, optionally, the general ledger interface.
Where:
From the Vehicle Order View, select Actions > Depreciation. This will display the Used Vehicle Depreciation window.
How to Work With Vehicle Order Depreciation:
The Used Vehicle Depreciation window contains a list of all vehicle orders currently held in the depreciation file. At the start of a new depreciation run, this list will contain the vehicles depreciated on the last run.
To calculate a new depreciation proposal for the current month, select Actions > Calculate Depreciation or click Calculate. This will display the Calculate Used Vehicle Depreciation window which shows the last date range used for calculation. Input the new required date range and click OK. If the new date range precedes or overlaps the previous range, Fusion will display a warning.
During calculation, vehicles are selected for depreciation if they have a vehicle type which is eligible for depreciation, they are uninvoiced at the time the calculation is run, they have an actual receipt date on or before the start date selected and they have an actual chassis cost greater than zero. On completion, a Depreciation Proposal Report is printed showing the vehicles selected and their proposed depreciation values. The report is sorted by vehicle type and within vehicle type by stock ID.
If the actual chassis cost has been added or updated since the last time depreciation was posted, the value is highlighted in bold text.
When calculating the proposed depreciation value, the routine compares the age of the vehicle to the breaks defined in the Depreciation Rates table, and obtains the relevant percentage(s). Where a vehicle falls into more than one break period in the same calculation run, the depreciation value is calculated on a pro rata basis.
The calculation is based on the actual cost of the vehicle chassis only; other costs are not included. However, depending on a parameter setting, the calculation uses the actual cost of the vehicle chassis less accumulated actual depreciation. The formula is as follows:
((Base Cost x Break %) divided by Number of Days in Break) x Qualifying Days This Break
For example:
Calculation run 1/11 to 30/11, Vehicle first stocked 15/09, Base Cost 25000.00
Breaks: 0-30 days 0%, 31-60 days 2%, 61-90 days 3%, 91-120 days 4% etc.
This means that in the period 1/11 to 30/11 the vehicle qualifies for 13 days in the 31-90 break and 17 days in the 61-90 break.
((25000.00 x 2%) divided by 30) x 13 = 216.67
((25000.00 x 3%) divided by 30) x 17 = 425.00
Total 641.67
Note! The 'base cost' is
either the actual vehicle cost, or the actual vehicle cost less accumulated
depreciation, depending whether your system is configured to use the straight
line or reducing balance method of deprecation.
Each record in the proposal can be opened and the depreciation value amended, but you should always input an explanation for this action.
Records can also be deleted, if you don't want them to be depreciated in this run.
To add a new record select File > New. This will display the Add Depreciation Value window. Input the stock ID of the vehicle along with the depreciation value and a comment. Click OK to add it to the proposal.
To post depreciation transactions, select Actions > Post. When the posting is confirmed, records are created automatically on the Vehicle Order Actual Costs File, one per vehicle, with a document reference number pulled from the Number Range table.
If the facility is enabled, these transactions can also be posted to the Finance system. Depending on setup, either one record per stock ID is created or one record is created for each different combination of vehicle type and product code in the run. Note that in the latter case, no document number is written to the Interface File.
Selecting the print icon will print a copy of the last depreciation report. The information it contains is only available for reprint until the next time the depreciation calculation is run.