Add or edit depreciation

Add depreciation to a line item

  1. In the estimate, click the XactContents tab.
  2. On the Inventory page, in the Quick Entry pane, select or add an item, and then click the Depr value and select the depreciation type.
  3. To save the changes, click outside the depreciation box.  The line item displays the depreciation amount.

Depreciate a line item

By percent

  1. In the estimate, click the XactContents tab.
  2. On the Inventory page, in the Quick Entry pane, select or add an item, and then click the Depr list and select By Percent.
  3. In the depreciation percent box, enter the percent that the item has depreciated.
  4. To save the changes, click outside the depreciation box.  The percentage of depreciation is calculated and the line item displays the amount.

By amount

  1. In the estimate, click the Estimate Items tab.
  2. On the Items page, in the Quick Entry pane, select or add an item, and then click the Depr list and select  Amount.
  3. In the depreciation amount box, enter the amount the item depreciated.
  4. To save the changes, click OK. The line item displays the depreciation amount.

By age/use

  1. In the estimate, click the Estimate Items tab.
  2. On the Inventory page, in the Quick Entry pane, select or add an item, and then click the Depr list and select By Age.
  3. Enter the age of the item.
  4. In the Condition list, select  one of the Use types:
  • Below Average—Increases the normal age-based depreciation by 40% (normal depreciation * 1.4).For example, The unit price of a line item is $100.00. The life expectancy of the line item is 14 years and the Age/Use of the line item is 1 year. To get the percentage based on the life expectancy and Age/Use, divide 1 year by 14 years (1 / 14 = .071428), move the decimal over two places and round to 7.1%. Take the life expectancy percentage and multiple it by the normal age-based depreciation, 7.1% * 1.4 = 9.94, rounded to 10%. The depreciation is then multiplied by the line item unit cost, 10% * $100.00 = $10.00.
  • Average—The normal depreciation is based on the life expectancy and age of the material. For example, the unit price of a line item is $100.00. The life expectancy of the line item is 14 years and the Age/Use of the line item is 2 years. To get the percentage based on the life expectancy and Age/Use, divide 2 years by 14 years (2 / 14 = .142857), and then move the decimal over two places and round to 14.29%. Take the life expectancy percentage and multiple it by the line item unit price, 14.29% * $100.00 = 14.29.
  • Above Average—Reduces the normal age-based depreciation by 40% (normal depreciation * .6). For example, the unit price of a line item is $100.00. The life expectancy of the line item is14 years and the Age/Use of the line item is 3 years. To get the percentage based on the life expectancy and Age/Use, divide 3 years by 14 years (3 / 14 = .214285), and then move the decimal over two places and round to 21.4285%. Take the life expectancy  percentage and multiple it by the normal age-based depreciation, 21.4285% * .6 = 12.857, rounded to 12.86. Take the life expectancy  percentage and multiple it by the line item unit price, 12.86% * $100.00 = 12.86.
  • New/Replaced—New/Replaced removes any depreciation.
  1. To save the changes, click outside the box. The line item displays the depreciation amount.

Mark an item as recoverable

  1. In the estimate, click the XactContents tab.
  2. On the Inventory page, in the Quick Entry pane, add or select the item.
  3. To make the item recoverable, click the Depr value and select Recoverable.

Mark an item as non-recoverable

  1. In the estimate, click the XactContents tab.
  2. On the Inventory page, in the Quick Entry pane, add or select the item.
  3. To make the item Non-Recoverable, clear the Recoverable check box.

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