Asset Depreciation Processing

Confirm Usage and View Depreciation

This section deals with the Asset Depreciation Processing business component and its activity Confirm Usage and View Depreciation.

Confirm Usage and View Depreciation – A summary of activity

This activity enables the Finance team to record / confirm latest usage for usage-based assets just prior to depreciation processing. (Since for usage-based assets, it is mandatory that usage be recorded before depreciation computation at the end of a financial period.) This enhances the precision of financial functions, such as depreciation and asset value processing.

Typically, the Technical team maintains the usage information using the Technical Records component. However, this activity provides an additional advantage to the Financial team to record usage.

Alternately, users can choose to only view usage / depreciation.

The financial period for the computation of depreciation is set to a ‘month’ in the chosen financial year.

What you can do in the activity

4 Record and confirm asset usage

4 View usage and depreciation

Confirming asset usage and viewing depreciation

ØSelect the “Confirm Usage and View Depreciation” link under the “Asset Depreciation Processing” business component.

The “Confirm Usage and View Depreciation” page appears.

ØSelect the “Review Usage” radio button to record, compute and save asset deprecation.

ØSelect the “View Depreciation” radio button to view depreciation details only.

ØClick the “Go” pushbutton.

ØUse the drop-down list box to select the code identifying the depreciation book. The system lists all the Active depreciation books defined in the “Set Depreciation Book” activity of “Asset Depreciation Setup” business component. The system displays “Corporate” by default on launch of the page.

ØEnter the following fields in the “Search Criteria” group box to retrieve depreciation records for view / update.

Finance Book	To retrieve depreciation records pertaining to a specific financial book, select the financial book from the drop-down list box. The system lists the entire finance books mapped to the login organization unit for selection. The finance book must have been defined in the “Create Finance Book” activity of the “Organization Set Up” business component. The system displays the first finance book by default on launch of the page.
Financial Year	To retrieve depreciation records pertaining to a specific financial year, select the financial year from the drop-down list box. Note: If “Review Usage” radio button is selected, the drop-down list box does not show any financial years. Alternately, if “View Depreciation” is selected and Finance Book is 'CORP', all financial years till the previous financial year are listed in the drop-down list box. If finance book is other than 'CORP', all financial years defined for the depreciation book are available for selection.
Financial Period From/To	To retrieve depreciation records pertaining to a specific range of financial period, use the drop-down list boxes to select the beginning and concluding financial period in the range. The drop-down list boxes display the financial periods pertaining to the financial year. However, if you have opted for “Review Usage”, Financial Period From drop-down list box does not display any values. Note: If “Review Usage” radio button is selected, the drop-down list box does not show any financial years. Note: If “Review Usage” radio button is selected, the drop-down list box does not show any financial periods. Alternately, if “View Depreciation” is selected and Finance Book is 'CORP', all financial periods till the previous financial period are listed in the drop-down list box. If finance book is other than 'CORP', all financial periods defined for the depreciation book are available for selection.
Asset Class	To retrieve depreciation records pertaining to assets belonging to a specific asset class, select the asset class from the Use the drop-down list box to select the code identifying the asset class. The system lists the Active asset classes defined in the “Create Asset Class” activity of the “Asset Type Definition” business component.
Asset #	The number identifying the asset. The asset number must have been defined in the “Create Simple Asset” activity of the “Asset Capitalization” business component and a valid asset number for the specified “Finance Book”. This field is mandatory if the “Asset No.” is selected in the “Basis” field. Help facility available
Tag #	To retrieve assets with a specific tag, enter the tag. The system displays those assets that hold the tag similar to the one entered here. Help facility available
Depreciation Category	Use the drop-down list box to select the category of depreciation The drop-down list box retrieves those depreciation categories defined for the depreciation methods "Life To Overhaul" and "Life to Phase Out"
Dep. Processing Status	To retrieve depreciation records in a specific processing status, select the status from the drop-down list box. The drop-down list box displays: "Processed", "Confirmed" “Deleted” and "Reversed". However, if “Review Usage” radio button is selected, "Deleted", "Reversed" and "Pending" are displayed. Alternately, "Processed", "Confirmed”, "Deleted" and "Reversed" are displayed, if you have selected the “View Depreciation” radio button.
View Exception Detls	To retrieve depreciation records with specific error, select the error from the drop-down list box. The drop-down list box lists error values.

ØClick the “Get Details” pushbutton to retrieve the asset details in the tab pages.

ØSelect the “Usage Information” tab to record usage details of the asset. (This tab being the default tab appears on launch of the activity.)

ØClick the “Allocation” tab to record depreciation allocation details for the fixed asset.

ØClick the “Compute” pushbutton to compute depreciation for the asset.

ØClick the “Save” pushbutton to save the recorded details.

Note: The “Compute” and “Save” pushbuttons are not available, if you have selected the “View Depreciation” radio button.

The “View Statistics” group box displays the following:

Asset Selected	The total number of records that you have selected in the multiline of the “Usage Information” tab.
Records Selected	The sum total of documents existing against Asset #/Tag # selected in the multiline of the “Usage Information” tab.
Tag Selected	The total number of records that you have selected in the multiline of the “Usage Information” tab.

The “Link” group box displays the following:

ØSelect the “Process Depreciation” link to initiate the depreciation processing for assets.

Recording the Usage Information tab

ØClick the “Usage Information” tab in the “Confirm Usage and View Depreciation” page.

The “Usage Information” multiline displays the following details of assets retrieved by the search criteria:

Ind.

Asset #

The identification number of the fixed asset.

Tag #

The tag number of the fixed asset.

Usage

The nature of usage of the fixed asset. Displays

§ "Asset Cost", if the cost of the usage pertains to normal asset cost.

§ "CME", if the cost of the usage pertains to the Capital Maintenance expenditure of the asset

Asset Cost

The value of the fixed asset / CME cost.

Book Value

The current value of the asset in the financial books after deduction of depreciation charges.

Process parameter “Consider Opening usage on In Service Date for CME Depreciation computation” is	Book value computation
1	[Asset Cost/(Maintenance Interval – Usage-In service date)] * Remaining Usage
0	[Asset Cost/Maintenance Interval] * Remaining Usage

Note: 1) If you delete the book value, it will be automatically reset to 0. 2) The book value must be less than Maintenance Interval, less than or equal to Cum. Usage and positive. 3) This field is updated as ‘0’ against the component, if it has complied with the CME event. 4) For migrated assets, the Usage-In Service Date value is set to the Asset Opening usage from the Asset Migration component.

Comp. #

The component number of the asset.

Param.

The lead parameter of the asset for calculating its usage, depreciation and book value.

Maint. Int.

The interval between successive maintenance on the aircraft.

ØEnter the following in the “Usage Information” multiline.

Usage-In Service Date

The usage of the asset as on the In Service date.

However, by default the system sets the asset usage for the fixed asset in the following way:

§ The TSN/TSO value as on the In Service date for components whose usage as on in service date is not available.

§ The TSN value for Life Limited parts and TSO Value for Non-Life Limited parts as on In-Service Date

Field availability: This field is available only if the process parameter "Consider Opening usage as on In Service Date for CME Depreciation computation" is set as ‘1’ in the “Set Finance Process Parameters” activity of OU Parameter Setup. However, this field does not appear, if "Consider Opening usage as on In Service Date for CME Depreciation computation" is set as ‘0’.

The “Usage Information” multiline displays the following:

Cum. Usage

The total usage of the asset in terms of the lead parameter subsequent to migration.

ØEnter the following in the “Usage Information” multiline.

Migrated Usage

The value at which the parameter was initialized when it was inducted into operations.

The “Usage Information” multiline displays the following:

Cum. Depreciated Usage	The total of Depreciated Usage till the previous period for the Asset # /Tag #.
Depreciable Usage	The depreciable usage of the asset as determined by the system for computation of depreciation on the fixed asset

ØEnter the following in the “Usage Information” multiline.

Actual Depreciated Usage

The depreciable usage of the asset to be considered for depreciation computation on the fixed asset.

If value specified by the user here overrides Depreciable Usage for depreciation computation.

The “Usage Information” multiline displays the following:

Prev. Period	The value of “Actual Usage” as at the end of the previous financial period.
Remaining Usage	The remaining lifespan of the aircraft based on lead parameter usage. Maint. Int - (Cum. Usage ) + (Depreciable Usage - Actual Depreciated usage)
Dep. Rate	The rate of depreciation charged on the asset. Remaining Usage / Maint. Int*100
Revised Book Value	The book value of the asset as result of reversal/change of depreciation rate charged on the asset. Asset Cost / Maint. Int * Remaining Usage
Dep. Amount	The amount of depreciation charged on the asset in the financial period (month).
Cum. Dep.	The total amount of depreciation charged on the asset since induction till date.
A/C Dtls	Indicates whether account details for the asset #/tag # are available. If this field displays ‘Yes’, you can click on the data hyperlink to navigate to the Allocation tab.
Dep. Status	The depreciation status of the asset, such as
Asset Class	The asset class to which the asset belongs.
Asset Desc.	The description of the asset.
Tag Desc.	The description of the asset tag.
Dep. Category	The category of depreciation being charged on the asset.
Fin. Book	The finance book to which the depreciation entries are posted for the asset.
Fin. Year	The financial year of the financial period for which the depreciation is charged based on the depreciable usage.
Fin. Period	The financial period from the financial year in which the depreciation was charged on the asset. The financial period is set to a month of a financial year.
Part #	The part # of the asset.
Serial #	The serial # of the asset.
Aircraft Reg #	The aircraft to which the asset is currently attached.
Error	Error message, if
Depreciation Book Code	The identification number of the depreciation book to which depreciation entries are posted for the asset.
Last Modified By	The login user who most recently modified the record.
Last Modified Date	The date on which the login user most recently modified the record.

Recording the Allocation tab

ØClick the “Allocation” tab in the “Confirm Usage and View Depreciation” page.

The multiline displays the following:

Ind.

ØEnter the following in the multiline:

Asset #

The identification # of the fixed asset (component/landing gear/engine).

Help facility available

Tag #

The asset tag for the asset.

Help facility available

Usage

The usage of the fixed asset in the financial period in terms of the lead parameter.

The multiline displays the following:

Comp. #

The component # of the fixed asset.

ØEnter the following in the multiline:

Aircraft #

The aircraft # to which the asset presently is attached.

Help facility available

The multiline displays the following:

Param.	The lead parameter for the asset based on which the lifespan of the aircraft is estimated.
Cum. Usage	The total usage of the asset since being inducted into operation or the TSN value of the asset.
Cum. Depreciation Usage	The sum total of "Actual Usage" till the previous period for Asset # / Tag #.
Depreciable Usage	That part of the usage of the fixed asset considered for depreciation computation for the financial month as determined by the system.

Enter the following in the multiline:

Actual Depreciated Usage

That part of the usage of the fixed asset considered for depreciation computation for the financial month.

Note: By default, this field displays the same value as in the Depreciable Usage field. However, the user is allowed to change the system-generated depreciable usage in this field.

The multiline displays the following:

Prev. Period	The value of "Actual Depreciated Usage" recorded for Aircraft # for the previous financial period. For example, the current financial period is September, this value would pertain to the month of August.
Usage %	The percentage of the usage of the fixed asset that is considered for depreciation computation.
Dep. Amount	The depreciation value chargeable on the fixed asset in the financial period.
Apportioned Amount	The depreciation amount allocated to the fixed asset for the financial year.

ØEnter the following in the multiline:

Cost Center

The cost center to which the depreciation on the fixed asset is charged.

Help facility available

The multiline displays the following:

Dep. Status	The status of depreciation.
Fin. Book	The finance book to which the depreciation on the fixed asset is posted.
Asset Class	The asset class to which the part belongs.
Asset Desc.	The description of the asset.
Tag Desc.	The description of the asset tag.

ØEnter the following in the multiline:

Fin. Year	The financial year for which the depreciation on the fixed asset is being charged.
Fin. Period	The financial period from the financial year for which you intend to record and compute depreciation on the fixed asset.

The multiline displays the following:

Part #	The part # of the fixed asset.
Serial #	The serial # of the fixed asset.
Depreciation Book Code	The identification # of the depreciation book to which the depreciation entries must be posted.
Last Modified By	The login user who last modified the record.
Last Modified Date	The date on which the user last modified the record.