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Tagged Furniture and Equipment Depreciation

As an asset ages, it typically becomes less able to provide service, and therefore its monetary value decreases. Standard accounting practices call for:

tracking the current value of furniture assets and the amounts by which they have depreciated
expensing the cost of each item over its depreciation period (expected service life), such that a portion of its cost becomes an expense for each of the months in the depreciation period.

For a tagged furniture or an equipment inventory, you can use the Depreciation process to analyze each item’s purchase value, current value, accumulated depreciation, depreciation expense, and salvage value.

You can also determine the value of your complete tagged furniture or equipment inventory, which feeds into the overall value of your company.

Depreciation

Location

Asset Management domain

Asset Portal application

Depreciation process

Business Result

Data on furniture costs and depreciation based on standard accounting principles.

Informed decisions on future furniture purchases based on accumulated depreciation value of current inventory.

Increased awareness of furniture costs leading to better care of current inventory.

Used By

facility managers

asset managers

purchasing managers

financial analysts

Reasons for Automating

To track and costs and depreciation of a furniture inventory using one of four standard accounting formulas.

To obtain the current value of the furniture inventory.

To store furniture depreciation data in a central repository where it is available to key stakeholders over a corporate network.

To expense the costs of each item over its deprecation period.

Prerequisite Applications

Tagged Furniture Inventory process

Equipment Inventory process

Reports

General Ledger Journal Entry report

Depreciation Schedules report

The following are typical users:

User	Tasks
Purchasing Manager	Consider current depreciation value when ordering new items.
Financial analyst	Expense the cost of the item over its deprecation period.
Facility Manager Asset Manager	Obtain the current value of the furniture inventory.