Setting Up Replacement Value

The first time you set up the Replacement Value, you make several decisions about how the program calculates the Replacement Value amount. You must make the following choices:

• Which depreciation book do you want to use as the basis for the Replacement Value calculations (that is, Tax, Internal, State, AMT, ACE, or a user-defined book)?

• Which General Information field do you want to use to group assets for applying the Replacement Value index (and estimated life override, if applicable)?

• Which method do you want to use to calculate the Replacement Value? That is, do you want the system to apply the index to the Acquisition Value or the prior year’s Replacement Value?

When you set up the Replacement Value, you select a General Information field to use as a basis for applying an index value. For example, if you choose the Class field in the RV Setup tab, you may have a class for Computers & Peripherals and another class for Furniture & Fixtures. The next step is to enter an index value to be applied to each classification of assets.