Asset Maintenance

• What current federal guidelines should you use to assign property types to fixed assets?

• What guidelines should you follow to assign estimated life and ADS life?

• In books other than the Tax book, should you allow book-specific information, such as the date placed in service and the depreciation method, to use the system-determined defaults? (Those defaults are based on entries in the Tax book.) If not, what guidelines should you follow to assign values in the other books?

• What percentage depreciation should you use for assets using declining-balance methods, including MACRS formula and MACRS table?

• If you use a declining-balance method of depreciation, should you switch the method to straight-line at the optimum time? (For MACRS methods, the system automatically handles this.)

• What guidelines should you follow to assign estimated life and recovery periods?

• For which assets, if any, should you take the Section 179 expense deduction?

• For which assets, if any, should you take the Investment Tax Credit (ITC) option, and for what percentage?

• What are the guidelines for estimating asset Salvage Value?

• If you previously maintained an asset using another depreciation system (either manual or computerized), how much depreciation was taken in previous years? Should you bring forward that depreciation to the application? Was the midquarter averaging convention used for any such assets?

• What depreciation procedures should you follow when purchasing an asset that is now being leased?

• When should you recognize gains or losses for disposed assets?

• Are you familiar with the company's General Ledger accounts and how assets should be classified?

• Is it necessary to classify assets by location?

• Do you need to customize any of the data entry fields and/or add selection help?