Asset Properties / Financial Tab

The Financial tab enables you to enter, or edit if applicable, the following information about an asset.

• Main Area
• Purchased Acquisition Mode Area
• Leased Acquisition Mode Area

Note:These values are used for record-keeping purposes only, and do not affect any licensing calculations. For details about modifying the monetary values and currency exchange rates, see Editing Money Values.

Main Area

The following properties are displayed in the main area of the Financial tab.

Asset Properties / Financial Tab - Main Area

Property

Description

Acquisition mode

Identifies the method through which this asset was acquired by your enterprise.

Select an option from the drop-down list to indicate whether this asset was Purchased, Leased, Rented, or borrowed (another entity lent or Loaned it to your enterprise).

Note:If you select:

• Purchased, fields related to depreciation are displayed (see Purchased Acquisition Mode Area).
• Leased, the Lease agreement, Lease number, and other related fields are displayed (see Leased Acquisition Mode Area).

Delivery date

Enter the date this asset was delivered to the enterprise, or click the calendar icon in the right end of the field to select the date from a calendar.

Warranty type

The terms of the warranty (guarantee) on the device.

If there is a warranty associated with this asset, select one of the warranty types from the drop-down list. The default options include:

• None 
• One year on site 
• Three years on site 

End of warranty

The expiry date for the warranty (guarantee) supplied by the hardware manufacturer (or agent). Thereafter maintenance is entirely at the expense of your enterprise.

Enter the date that the warranty expires for this asset, or click the calendar icon at the right of the field to select the date from a calendar.

Amount and Frequency 

The monetary value of a charge against the asset, and the frequency of charges when applicable.

Enter a monetary value to be charged, and, when applicable, select a value from the Frequency drop-down list:

• None 
• Weekly 
• Monthly 
• Quarterly 
• Yearly 
• Lump sum 

Purchased Acquisition Mode Area

If you selected Purchased from the Acquisition mode drop-down list in the Financial area, you can also specify details about the tax-related depreciation of your asset.

Asset Properties / Financial Tab - Purchased Acquisition Mode Area

Property

Description

Current value

To assist with record keeping, you can store a current value setting. Note that this is not automatically updated by the system.

Enter the current value you want to assign to this asset. For information about choosing currency and exchange rate, see Currency Settings and related topics. The accuracy of your calculations in the second and subsequent years of an asset’s life depends on you annually updating Current value to the “Current written-down” or “Net book” value (according to your accounting terminology) of the asset.

Tip:To keep these records up-to-date automatically, you can use Business Importer to import these values from your financials software after assets are depreciated each year-end.

Residual value

The value of the asset after depreciation. Applies only to fully-owned assets, and the Depreciation group of fields are displayed only when the Acquisition mode is Purchased.

Enter the estimated value of the asset at the end of the depreciation period.

Depreciation method

For record keeping only (no calculations are performed automatically), identify the depreciation rules applied to this asset.

Choose Straight Line or Residual Value, which generally have the following meanings:

• With straight line depreciation, the asset is depreciated by the same amount each year over the asset's useful life
• With residual value depreciation, the asset is depreciated by a fixed percentage over its useful life.

Period (years)

If you selected Straight Line as the depreciation method, specify the total number of years over which the depreciation should be calculated (ignored if the depreciation method is set to Residual value).

Rate

The percentage of current value by which the asset is to be depreciated each year.

If you selected Residual Value as the depreciation method, specify the annual rate for depreciation.

Leased Acquisition Mode Area

If you selected Leased from the Acquisition mode drop-down list in the Financial area, you can also specify the details about the lease and its termination.

Asset Properties / Financial Tab - Leased Acquisition Mode Area

Property

Description

Lease agreement

Enter the title of the lease agreement in a form helpful to your audit trail.

Lease number

Enter the identifying code. Numbers, letters, and punctuation marks are all accepted.

Start date

Enter the date, or click the calendar icon at the right end of the field to pick the date, when the lease began.

End date

Enter the date, or click the calendar icon at the right end of the field to pick the date, when the lease concludes.

Tip:You can also set the end date for many assets at once by:

• Linking them to a contract with a Contract type of Lease.
• Setting the contract Expiry date in the General tab of the contract properties.

You can also combine the setting on the contract (as the ultimate end date of the lease) with settings on individual assets (for example, if the lease specifies a time- span from the delivery date). Where dates are recorded in both places, the lease for an individual asset expires on the earlier of the two dates.

Lease price

Enter the total lease price (excluding any post-lease residual purchase value). For help with entering difference currencies, start with Currency Settings.

Buyout

Enter the residual buyout value to acquire the asset at the end of the lease agreement. For help in entering a different currency and selecting an exchange rate, see Currency Settings and related topics.

Payment

Enter the amount, preferably in the same currency as the payment occurs (to account more easily for changes in exchange rates over time). For help in changing currency and exchange rates, start at Currency Settings.

Period

The frequency of (or time between) lease payments.

Use the pull-down of options to choose how often you make lease payments.

Termination date

For use when the lease does not run its full term (in contrast, for the expected end date, see End date in the Lease information section when the Acquisition mode is Leased). Naturally used in conjunction with the Termination reason field in this Lease termination section to complete the audit trail.

Enter the date (or click the calendar icon on the right end of the field to pick the date) of early termination of the lease agreement.

Termination reason

Audit trail explaining the reason for the end of the lease. Also includes normal expiry options.

Use the drop-down list to select one of:

• Lease ended - Asset returned—Select for a normal exit from the lease agreement.
• Early termination - Asset returned—Select for an early termination (perhaps due to changed business circumstances, where the asset is no longer required).
• Buyout—Suggested for a normal exit from the lease with purchase of the asset for its residual (or agreed) value.
• Early buyout—Select for conversion of the lease to a purchase before the scheduled end of the lease agreement
• Trade—Select for goods exchanged with the agreement of lessor, so that this leased asset was exchanged for another (perhaps a machine upgrade).

If none of these options apply, consider recording details in the Information field on the General tab.