UOP - Method #1 - Enter a percentage for the life - Annual Depreciation.
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1 UOP - Method #1 - Enter a percentage for the life - Annual Depreciation. There are two ways that you can use the UOP depreciation method. The first method is by entering a percentage for the life. However, keep in mind that you would have to edit the asset each year and enter the percentage that applied for the year. And there is no way to have the monthly amount vary for different production amounts. In the screen shot shown below, a life of 2.5 (which would be interpreted as 2.5%) is entered for the life and multiplied by the cost to determine the annual depreciation. Page 1
2 UOP - Method #1 - Enter a percentage for the life - Monthly Allocation The annual depreciation is then allocated over the months in use so that each month / period gets a pro-rata share of the depreciation without regard to any variations in production units during the year. The only way to change the allocation amounts would be to override the amounts. Shown below is the monthly allocation of the annual depreciation of $8,740 over the five months the asset was in use. Page 2
3 UOP - Method #2 - Actual Production Units The alternative, and more conventional method, of using the UOP depreciation method permits the entry of actual production units that are used to determine the annual and monthly/period depreciation amounts. Before you can use this method, you need to tell Asset Keeper Pro that you wish to enter production units for the UOP method. Thsis done in the Client Information screen in the Calculations section as shown below. NOTE - VERY IMPORTANT - Even though you mark this check box, you can still enter UOP assets using the old method of just entering the percentage that you want to take. Asset Keeper Pro will ONLY use the units produced to calculate depreciation IF YOU ENTER TOTAL PRODUCTION UNITS for the asset. Page 3
4 UOP - Method #2 - Actual Production Units - Enter Production Units To enter production units for an asset, go to the Add / Edit screen and the method tab of the method where you entered UOP for the depreciation method. Then click the Production Units button to enter the production units. Page 4
5 UOP - Method #2 - Actual Production Units - Enter Production Units ( continued ) When you click the Production Units button, the following screen will be displayed. Note that you MUST enter Total Production Units prior to entering units for the current months or periods. If the asset was acquired in a prior year, the prior year units will be calculated based on the ratio of the accumulated depreciation to the basis X the total production units. Asset Keeper will add up the units entered for all months to determine the percentage to apply to the current year. That percentage will be automatically entered in the asset's life field when this screen is closed. The units entered for each month / period will then be used to calculate the monthly depreciation for that month. Take care when using the actual production units, because you can enter production units for months prior to the acquisition date of the asset or after the asset is sold. No validation is performed to keep you from doing something like this. Page 5
6 Page 6
7 UOP - Method #2 - Actual Production Units - Enter Production Units (continued) After closing the production screen, the life and annual depreciation will be updated based on the current production units you entered. Page 7
8 UOP - Method #2 - Actual Production Units - Enter Production Units ( continued ) After calculating the monthly depreciation, it will reflect the monthly / period depreciation based on the units entered for each month / period as shown below. UOP - Method #2 - Entering Production Units ( Alternative method) We've already shown how you can enter production units from the Add / Edit screen; however, you can also enter production units from the Quick Edit screen. From the Quick Edit screen, select "Production Page 8
9 Units" from the Field to Change drop down. You will also need to select the method that you want to change. Automatically, only assets that have been assigned the UOP depreciation method will be selected, so you do not have to select a sort order or select assets. When you click the Edit button, you will see the following screen. Page 9
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