Depreciation

The Depreciation option in The RAM System Corporate Edition contains the programs used to calculate and track depreciation at the store level if you are a single store operator. If you have more than one location and you transfer between locations, you MUST use <%CORP NAME%> to process depreciation. The RAM System Corporate Edition tracks different methods of depreciation. There is more than one way to calculate the amount of depreciation for our inventory. Please consult your accountant for the method of depreciation you should use. When you have imported the inventory; you are ready to print the desired reports.

To process and print depreciation figures

1.Make sure you have received the latest data files from each store. How?

2. TRANSFER VERIFICATION REPORT

We recommend printing the Transfer Verification Report because it will help you find and fix transfer errors before assigning depreciation figures to each location.

3. IMPORT

The Import is a one-step process for copying the inventory records to the Depreciation File and calculating the depreciation figures. Importing depreciation also Locates Inventory as of the highest date imported.

4. PRINT DEPRECIATION REPORTS

Now you are ready to print any of the depreciation reports.

Use MACRS Depreciation

If you use the MACRS method for depreciating your inventory, be sure to check this box in Company Setup.

Use RPM Depreciation

If you use the Revenue Projection method or Income Forecasting method for depreciating your inventory, be sure to check this box in Company Setup.

Some frequently asked questions: (click each question for answer)

When I did the initial depreciation calculation all my depreciation numbers were changed and my reports no longer matched what I had in the past. Why did this happen?

When you are using the Initial Depreciation Calculation by itself, the numbers are not changed. The calculated depreciation numbers are recalculated and saved from the purchase date to the "through date" for the calculation. The numbers cannot be calculated any differently as long as there was no import activity processed.

If you IMPORT inventory items and change any of the settings or import for items previously depreciated the calculations could be different.

•	If you input additional inventory items in the inventory file and then used the import option, there may be additional depreciation calculated on these items.

•	If you changed the purchase date of an inventory item and then used the import option, there may be additional months or days in the life of these items.

•	If you changed any of the import settings or methods, there may be different depreciation calculations based on these different settings.

•	If you changed the cost of an inventory item and then used the import option, there may be a different amount of remaining book value and depreciation amount based on the different cost you input.

•	When I imported my depreciation for the month I printed the report and it showed TAX method for depreciation. How can I change to BOOK method?

When you imported the depreciation, you selected TAX as the reporting method. To calculate for a different depreciation method go to:

Operation > Depreciation > Calculate Depreciation

This option allows the user to change the reporting method and the "Calculate As Of" date.

In this section also learn about:

Depreciation Definitions

Import

Methods of Depreciation