New fixed assets are defined using "New" option on the Fixed Asset Definitions list.
The properties of fixed asset definitions are similar to material definitions. Fields on the general info window are used to record general information (code, description, Aux. code, authorization code, producer code) for the material used as fixed asset.
Certain information to be used in fixed asset records and calculations is recorded using Fixed Asset Information option on the card.
Default information to be used in depreciation calculations is recorded on the Table Parameters and Alternative Table Parameters fields using Fixed Asset Info option.
Depreciation Type: The field used to specify the depreciation type to be applied to the fixed asset. Two types of depreciation can be applied: Normal and decreasing balance. The depreciation specified on this field is applied as default in depreciation calculations.
When Normal depreciation is applied, the value of the Fixed Asset is reset within a certain period of time and by applying equal deductions. The record defaults to be used in calculations are specified.
When Declining Balances is used, the value of the Fixed Asset diminishes each year for the specified Depreciation Rate. The depreciation value of the next year is calculated over the actual value of the fixed asset. In this way, the balance (remaining fixed asset value) decreases each year.
In the last year of the depreciation period, all the past values of the fixed asset are allocated as depreciation, and the fixed asset value is equalized to zero.
Depreciation Rate: The rate used to calculate the depreciation share. The rate entered here is transferred as default into purchase slips.
The depreciation rate for normal depreciation method is 20%, while the rate for decreasing balances (in other words, accelerated depreciation) is 40% minimum.
The depreciation rate for fixed assets purchased before 1 January 1995 is 25% if normal depreciation is used, and 50% if declining balances is used.
Depreciation: The period between the start and end of depreciation allocation for the fixed asset. The selected depreciation rate and the depreciation duration calculated using the specified depreciation rate is automatically transferred into this field.
Revaluation: This field is used to specify whether or not the fixed asset will be revaluated. Revaluation can be applied to tangible assets that are subject to depreciation. Companies that keep books according to the balance sheet method, and companies that have abroad operations can revaluate their domestic assets.
When revaluation is performed, assets are displayed on the balance sheet with high values, and depreciation can be allocated through revaluated values. The revaluation factor is defined by the Ministry of Finance and updated yearly.
Revaluation is performed separately for each fixed asset. Fixed assets purchased within the same year cannot be revaluated.
Revaluation Depreciation: Indicates whether or not depreciation will be applied to revaluation amounts. The selection made here is transferred as default into fixed asset invoices.
Pro-rata Depreciation: Pro-rata Depreciation indicates the depreciation calculation performed by processing the number of months from the date of purchase to the end of the year. Pro-rata depreciation is currently applied to passenger cars only. All Fixed Assets other than passenger cars are subject to yearly depreciation. Only half of the surcharges for vehicles are accepted as expenses. Expenses increasing the economic value of the vehicle are included in the original cost. Maintenance expenses are not included in cost.
Expense: Indicates that the defined fixed asset's depreciation will not be calculated by its own but it will be calculated by the fixed asset that will be used as expense. This info is important in redemption of cost increasing expenses.
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