Track Fixed Assets for LTC
- Create a record for each fixed asset to be tracked. Record the following:
- Purchase Date, Cost, Salvage Value and Estimated Life
- Active Status
- Last Post Date (depreciation will be calculated forward from this date.)
- If integrated with General Ledger, the expense accounts for Depreciation and Accumulated Depreciation.
- Calculate the Book Value from Cost less Salvage Value.
- Use straight line depreciation to calculate the Monthly Depreciation:
Cost less Salvage Value / Estimated Life = Monthly Depreciation.
- Update Book Value, YTD and Accumulated Depreciation through monthly processing.
- When necessary, change asset’s Status to Sold or Written Off.
Provide the Date Sold.
