Depreciation - Revision history

Admin: /* Option 2 */

2023-06-29T00:25:05Z

Option 2

← Older revision		Revision as of 00:25, 29 June 2023
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	'''5. Enter the residual salvage value in dollars ($).''' For example, $30,000.		'''5. Enter the residual salvage value in dollars ($).''' For example, $30,000.

	* Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ~~‘Number~~ of years of use ~~remaining’~~.		* Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the "Number of years of use remaining".
	* You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.		* You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.

Admin: /* Option 2 */

2023-06-28T23:44:20Z

Option 2

← Older revision		Revision as of 23:44, 28 June 2023
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	'''1. Press "Add Depreciating Item".'''		'''1. Press "Add Depreciating Item".'''


	'''2. Enter the name of the depreciating asset.''' For example, John Deere 7830 Tractor.		'''2. Enter the name of the depreciating asset.''' For example, John Deere 7830 Tractor.

Admin: /* Option 2 */

2023-06-28T23:44:10Z

Option 2

← Older revision		Revision as of 23:44, 28 June 2023
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	====Option 2====		====Option 2====
	Complete the Depreciation Schedule with information about every tractor, implement and other types of depreciating assets (e.g. vehicles, pumps and equipment) ~~by pressing "Add Depreciating Item":~~		Complete the Depreciation Schedule with information about every tractor, implement and other types of depreciating assets (e.g. vehicles, pumps and equipment).

	'''1. ~~Enter the name of the depreciating asset~~.''' ~~For example, John Deere 7830 Tractor.~~		'''1. Press "Add Depreciating Item".'''

			'''2. Enter the name of the depreciating asset.''' For example, John Deere 7830 Tractor.

	~~'''2. Enter the value at beginning of year in dollars ($).''' For example, $100,000.~~

			'''3. Enter the value at beginning of year in dollars ($).''' For example, $100,000.

	~~'''3. Enter the number of years of use remaining (years).''' For example, 10 years.~~

			'''4. Enter the number of years of use remaining (years).''' For example, 10 years.

	'''4. Enter the residual salvage value in dollars ($).''' For example, $30,000.
			'''5. Enter the residual salvage value in dollars ($).''' For example, $30,000.

	* Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.		* Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.

Admin: /* Option 1 */

2023-06-28T23:42:33Z

Option 1

← Older revision		Revision as of 23:42, 28 June 2023
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	'''3. Navigate back to the [[Depreciation]] page and "Annual depreciation on plant and machinery (entered on [[Assets]] page)" will be displayed at the bottom of the page.'''		'''3. Navigate back to the [https://featonline.com.au/feat-wiki/index.php?title=Depreciation Depreciation] page and "Annual depreciation on plant and machinery (entered on [[Assets]] page)" will be displayed at the bottom of the page.'''

Admin: /* Option 1 */

2023-06-28T23:41:23Z

Option 1

← Older revision		Revision as of 23:41, 28 June 2023
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	3. Navigate back to the [[Depreciation]] page and "Annual depreciation on plant and machinery (entered on [[Assets]] page)" will be displayed at the bottom of the page.		'''3. Navigate back to the [[Depreciation]] page and "Annual depreciation on plant and machinery (entered on [[Assets]] page)" will be displayed at the bottom of the page.'''

Admin: /* Option 1 */

2023-06-28T23:40:23Z

Option 1

← Older revision		Revision as of 23:40, 28 June 2023
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	'''(c) Enter a name and the total value of all depreciating assets''' (e.g. $350,000).		'''(c) Enter a name and the total value of all depreciating assets''' (e.g. $350,000).


			3. Navigate back to the [[Depreciation]] page and "Annual depreciation on plant and machinery (entered on [[Assets]] page)" will be displayed at the bottom of the page.

Admin: /* Option 1 */

2023-06-28T23:37:03Z

Option 1

← Older revision		Revision as of 23:37, 28 June 2023
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	2. ~~Enter~~ the total value of all depreciating assets ~~into the [[Assets]] page by~~ (a) ~~clicking ‘Add Asset’ and~~ (b) ~~selecting ‘Plant~~ and ~~Machinery’ then~~ (c) ~~entering~~ a name and the total value of all depreciating assets (e.g. $350,000).		'''2. Navigate to the [[Assets]] page and enter the total value of all depreciating assets.'''

			'''(a) Click "Add Asset".'''

			'''(b) Select "Plant and Machinery".'''

			'''(c) Enter a name and the total value of all depreciating assets''' (e.g. $350,000).

Admin: /* Option 1 */

2023-06-28T23:34:02Z

Option 1

← Older revision		Revision as of 23:34, 28 June 2023
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	====Option 1====		====Option 1====
	Enter the depreciation rate (e.g. 10%) ~~then enter~~ the total value of all depreciating assets into the [[Assets]] page by (a) clicking ‘Add Asset’ and (b) selecting ‘Plant and Machinery’ then (c) entering a name and the total value of all depreciating assets (e.g. $350,000).
			'''1. Enter the depreciation rate''' (e.g. 10%).


			2. Enter the total value of all depreciating assets into the [[Assets]] page by (a) clicking ‘Add Asset’ and (b) selecting ‘Plant and Machinery’ then (c) entering a name and the total value of all depreciating assets (e.g. $350,000).

Admin: /* Why include depreciation? */

2023-06-28T23:32:49Z

Why include depreciation?

← Older revision		Revision as of 23:32, 28 June 2023
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	Depreciation is regarded as a fixed cost. Unlike other fixed costs there is no cash flow for depreciation. So why include it when calculating profit? At some point assets will wear out and need to be replaced. Including depreciation ensures that profit is sufficient to cover their eventual replacement.		Depreciation is regarded as a fixed cost. Unlike other fixed costs there is no cash flow for depreciation. So why include it when calculating profit? At some point assets will wear out and need to be replaced. Including depreciation ensures that profit is sufficient to cover their eventual replacement.

	- Note ~~that~~ in FEAT Online, the only asset class that is included in depreciation calculations is Plant & Machinery.		* '''Note:''' in FEAT Online, the only asset class that is included in depreciation calculations is Plant & Machinery.


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	'''4. Enter the residual salvage value in dollars ($).''' For example, $30,000.		'''4. Enter the residual salvage value in dollars ($).''' For example, $30,000.

	- Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.		* Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.
			* You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.
	- You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.

Admin: /* Why include depreciation? */

2023-06-27T22:53:34Z

Why include depreciation?

← Older revision		Revision as of 22:53, 27 June 2023
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	Depreciation is regarded as a fixed cost. Unlike other fixed costs there is no cash flow for depreciation. So why include it when calculating profit? At some point assets will wear out and need to be replaced. Including depreciation ensures that profit is sufficient to cover their eventual replacement.		Depreciation is regarded as a fixed cost. Unlike other fixed costs there is no cash flow for depreciation. So why include it when calculating profit? At some point assets will wear out and need to be replaced. Including depreciation ensures that profit is sufficient to cover their eventual replacement.

	~~<blockquote>~~Note that in FEAT Online, the only asset class that is included in depreciation calculations is Plant & Machinery.~~</blockquote>~~		- Note that in FEAT Online, the only asset class that is included in depreciation calculations is Plant & Machinery.

	You have two options on how to include Depreciation:
			'''You have two options on how to include Depreciation:'''

	====Option 1====		====Option 1====
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	====Option 2====		====Option 2====
	Complete the Depreciation Schedule with information about every tractor, implement and other types of depreciating assets (e.g. vehicles, pumps and equipment) by pressing "Add Depreciating Item":		Complete the Depreciation Schedule with information about every tractor, implement and other types of depreciating assets (e.g. vehicles, pumps and equipment) by pressing "Add Depreciating Item":
	~~# Enter the name of the depreciating asset. For example, John Deere 7830 Tractor.~~
	~~# Enter the value at beginning of year in dollars ($). For example, $100,000.~~
	~~# Enter the number of years of use remaining (years). For example, 10 years.~~
	~~# Enter the residual salvage value in dollars ($). For example, $30,000.~~

	~~<blockquote>~~ Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.		'''1. Enter the name of the depreciating asset.''' For example, John Deere 7830 Tractor.
	You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.~~</blockquote>~~

			'''2. Enter the value at beginning of year in dollars ($).''' For example, $100,000.


			'''3. Enter the number of years of use remaining (years).''' For example, 10 years.


			'''4. Enter the residual salvage value in dollars ($).''' For example, $30,000.

			- Residual salvage value is an estimate of how much the depreciating asset could be sold for at the end of the ‘Number of years of use remaining’.

			- You can only choose one of the above-mentioned options otherwise depreciation costs will be included twice – and therefore double counted.