Depreciation Extension Package
The Depreciation Extension Package is an add-on for managing equipment depreciation calculations within a Salesforce-based system.
Installation of this extension package must be done by Unaric personnel. Licensing for the Extension package is for your org on an annual basis. To use this extension you will be granted a license key and grant Unaric access to your org to install the extension package and the license key.
We recommend controlling access to the fields and objects by using Field/Object Level Security.
This extension adds several fields to the Equipment object and adds some new objects to store the resulting depreciation records. If you need to see the Equipment fields, you will need to add them to Page Layouts or perhaps even create new page layouts if desired.
It is recommended to create a new section on the page and place all related fields in this section. See the image below for an appropriate layout example.
Depreciation calculations are stored in the Depreciation Calculation object. This object should be added as a related list to the Equipment object. Use the page layout editor to add the related list and choose the fields you wish to display on the related list. Sort by Depreciation Calculation Name (descending) to see the most recent calculations at the top of the related list.
Each Equipment record can be associated with a single Company record. You will need at least one Company record to generate and report on Depreciation values on a company basis.
- Use the App Launcher icon and search for Companies.
- Add a record as required.
- Associate Equipment to the Company they belong to. You can use record edits or mass updates using List Views to update the Company field on Equipment. This data could also be loaded as an update to Equipment using the Data Import Wizard.
- Company: sed to control which company owns the equipment. Generation of Depreciation is done independently for each Company.
- Calculate Depreciation: Set this to TRUE to allow the module to calculate depreciation for this Equipment record.
- Credit GL Account: Enter a reference for the account to be credited. This is not a lookup just a text field.
- Debit GL Account. Enter a reference for the account to be debited. This is not a lookup just a text field.
- GL Segment 1-4: These 4 fields allow you to add additional information regarding the posting of Journal Entries. They can be used for Cost/Profit centers or any other qualifier on your GL codes.
- Original Cost: Enter the original Cost of this item for Depreciation purposes.
- Salvage Value: Enter a salvage value if desired. If the salvage value is left blank it will be set to 0. The system will depreciate the asset over its life to reach a salvage of 0.
- Life in Months: Enter the life of this Equipment for depreciation purposes.
- Monthly Depreciation: This is a formula field that displays the monthly amount of depreciation for this Equipment record.
- Last Depreciation Date: This is a roll-up summary field that shows you the last date that depreciation was calculated for this Equipment record.
- Total Depreciation: This is a roll-up summary field that shows you the total of all depreciation calculations to date for this Equipment record.
- Current Book Value: This is a formula field that shows you the current book value for this Equipment record.
- Remaining Life in Months: This is a formula field that shows you the remaining life in months for this piece of equipment.
- Dep Calc last Message: This can be used to assist with any issues during depreciation calculation. Any message from the last calculation is stored in this field.
In most cases, there will be previous depreciation for a piece of equipment. You can either enter a Depreciation Calculation record manually or load Depreciation Calculation records for all equipment. Create a single record that summarizes all deprecation to date and is dated prior to your first desired calculation date.
If you click the New button on the Depreciation Calculation object, you will see the following form:
- Equipment: This will be populated automatically. If you are building a spreadsheet for loading you will need to export a list of Equipment and have the EQ# in a column.
- Depreciation Date: Enter a date prior to your first desired calculation date. Use the first or last day of the month as the date. Note that date formats are specific to your locale.
- Depreciated Amount: Enter the total depreciation amount to date for this equipment.
- Remaining Book Value: Enter the remaining book value for this piece of equipment after the Depreciation Amount has been considered.
- Remaining Life in Months: Enter the remaining life in months for this piece of equipment after the Depreciation has been considered.
These records can also be loaded using Salesforce Import Wizard. Your spreadsheet will look something like the following;
Use the import wizard to load these records into the Depreciation Calculation object. To confirm your values you can use the formula fields on the Equipment object to confirm that you have the correct values loaded. These values will be used as the life-to-date values for the next depreciation calculation.
Each month for each Company you will run the Depreciation Calculation function. Navigate to the Companies object and select a company record. Click the Depreciation Calculation button.
The screen contains the necessary information. Enter the date you wish to calculate depreciation for. The system will set the date to the last day of whichever month you enter. Batch Size for most users will work with the default of 200. If you have Process Builders or other APEX triggers you may need to reduce this number.
Read and understand the Information Section. When you press the Start Depreciation button, the APEX job information will be added to the page and refresh periodically. Once the job has been completed you will be able to exit the screen or run another month. To exit the screen, use the X in the top right corner.
As mentioned on the page if there is an existing record in the month you chose to run that equipment record will be skipped. This allows you to add records in the past and run depreciation for those records only that have not had depreciation run previously.
After a Depreciation Calculation is run we store the Last Depreciation Date in the Company record. You can use this to confirm which date was last used for depreciation.
In the last month that depreciation gets run any remaining book value will be added to that last month. If the monthly calculation would leave behind a value due to rounding, this value will appear in the last depreciation calculation record. You will also receive an email when the job has completed with a summary of the job statistics.
We have included a Report Folder called ELTON Depreciation and a sample report called Equipment with Current Depr Values. You can use this report to see the current values of any equipment. You can use the Salesforce report system to build new reports as desired. The objects used for this module are the Equipment object where you find summary information including current values and the Depreciation Calculation object where each depreciation is separately stored. You should be able to obtain any required information from these two objects.
If you want to summarize all your Depreciation Calculations into a Journal Entry for the month:
- Navigate to Companies.
- Select the Generate Journal Entry action.
- When the Journal Entry has been generated use the X in the top right corner to exit this page.
- After the Journal Entry has been generated you can see the resulting entry by navigating to the Related list tab on the Companies page.
The Journal Entry will display the summary of the Journal Entry: Calendar Year - Period, Date, Number of Lines. and Amount. Change the Posted Flag or Interface Status to indicate when the Journal entry has been entered into your General Ledger System.
Access the GL Accounts and GL segment line-by-line records by using the Related tab on the Journal Entry. All of this data can be put onto a report and exported.
