The Equipment Depreciation record also includes a Depreciation Category (entity DECT) to classify depreciation events. The entity DECT will have 11 available values to classify depreciation events.
These depreciation types are included with EAM:
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Commission - Depreciation begins from the date an equipment asset is commissioned. The initial depreciation record created for an asset will be defaulted with a value of Commission. This holds true even if the record is created later following the commission date of the equipment asset.
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Early Disposal - The Early Disposal depreciation category is used when an equipment asset will be permanently removed from service or scrapped. System logic prevents any additional depreciation records being created after the Early Disposal depreciation event.
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Suspend - The Suspend depreciation category can be used when an equipment asset is taken out of service.
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Reactivate - The Reactivate depreciation category is used only following the suspension from service of an equipment asset.
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Increase Value - Over the course of its operation, a good preventative maintenance program or mechanical enhancement can positively change the value of an equipment asset. The Increase Value depreciation category is used for this type of event.
The system will require a value for the Change Value field. This value will be used to recalculate the Starting Value for the equipment asset. If the user enters 0 for the Change Value field, the system grant access to update the Residual value for the equipment asset.
The system will then calculate the depreciation details for the equipment asset beginning from the designated From Date using the defined Depreciation Method and the new Starting Value increased by the value of Change Value and stores the details in the database. These details replace any existing records of the same date or projected date.
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Decrease Value - Over the course of its operation, an equipment asset can degrade or decline in productivity level, negatively changing its value. The Decrease Value depreciation category is used for this type of event.
The system will require a value for the Change Value field. This value will be used to recalculate the Starting Value for the equipment asset. If the user enters 0 for the Change Value field, the system grant access to update the Residual value for the equipment asset.
The system will then calculate the depreciation details for the equipment asset beginning from the designated From Date using the defined Depreciation Method and the new Starting Value decreased by the value of Change Value and stores the details in the database. These details replace any existing records of the same date or projected date.
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Increase Life - Over the course of its operation, a good preventative maintenance program or mechanical enhancement can positively change the useful life of an equipment asset. The Increase life depreciation category is used for this type of event.
The system will require a value for the Change Life field. The system then calculates the depreciation details for the depreciation record created beginning from the designated From Date using the defined Depreciation Method and the new Remaining Useful Life increased by the value of Change Life and Residual Value and stores the details in the database. These details replace any existing records of the same date or projected date
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Decrease Life - Over the course of its operation, an equipment asset can degrade or decline in productivity level, negatively changing its life. The Decrease Life depreciation category is used for this type of event.
The system will require a value for the Change Life field. The system then calculates the depreciation details for the depreciation record created beginning from the designated From Date using the defined Depreciation Method and the new Remaining Useful Life decreased by the value of Change Life and Residual Value and stores the details in the database. These details replace any existing records of the same date or projected date
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Increase Estimated Lifetime Output - Over the course of its operation, a good preventative maintenance program or mechanical enhancement can positively change the lifetime output of an equipment asset. The Increase Estimated Lifetime Output depreciation category is used for this type of event. The system restricts this depreciation category for use only when the depreciation method is Units of Output.
The system then calculates the depreciation details for the depreciation record created beginning from the designated From Date using the defined Depreciation Method and the new Estimated Lifetime Output increased by the value of Change Est. Lifetime Output and Residual Value and stores the details in the database. These details replace any existing records of the same date or projected date.
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Decrease Estimated Lifetime Output - Over the course of its operation, an equipment asset can degrade or decline in productivity level, negatively changing its lifetime output. The Decrease Estimated Lifetime Output depreciation category is used for this type of event. The system restricts this depreciation category for use only when the depreciation method is Units of Output.
The system then calculates the depreciation details for the depreciation record created beginning from the designated From Date using the defined Depreciation Method and the new Estimated Lifetime Output decreased by the value of Change Est. Lifetime Output and Residual Value and stores the details in the database. These details replace any existing records of the same date or projected date.
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Change Depreciation Method - A change in accounting policy or buyout by another corporation may necessitate the need to change depreciation methods for an equipment asset to align with new practices. The Change Depreciation Method depreciation category is used for this type of event.
The system will exclude Units of Output if there are existing depreciation records for an equipment asset. Additionally, the system will verify the equipment asset has not been marked for Early Disposal.
The system then calculates the depreciation details for the depreciation record created beginning from the designated From Date using the selected Depreciation Method and stores the details in the database. These details replace any existing records of the same date or projected date.