Capital assets can be mapped to the appropriate ledger accounts for the purpose of acquisition, depreciation, and disposal

Description

This feature allows for the custom mapping of depreciation values to the appropriate accounts. For example,

Example Use Case

Scenario: A mid-market corporation has multiple capital assets, including buildings, machinery, and technological equipment. These assets are acquired, depreciated, and disposed of over time. The corporation uses CPM software to manage these capital assets.

Solution: Instead of maintaining disparate records, the corporation maps each asset class to its respective ledger account within the CPM software. This way, when a machine is acquired, its cost is posted to the correct asset ledger account for depreciation expenses and accumulated depreciation. This is applied to forecasted assets as well, making the process easier and more consistent.

Considerations

This can be as simple as selecting accounts when adding the asset, or associating a depreciation method with specific accounts. Once done, the system will use the method to spread those costs (if warranted) across that account for the appropriate period of time.

Questions to Ask a Vendor

• Mapping Features: Does your system support facility to map capital assets to the appropriate ledger accounts for acquisitions, depreciation, and disposals?
• Automation: How does your software automate the posting of acquisition, depreciation, and disposal entries in ledger accounts?