You can now establish depreciation values for your fixed assets ( see assets process below ) and keep accounting track of how these fixed assets depreciate through time. The two most fundamental methods of depreciation, accelerated and linear, can be chosen from the depreciation options, allowing you to set the number of usability years for those fixed assets in your hospital and to keep record of their current estimated value.
Here below we will show you the configuration process for depreciation of fixed assets:
Complete the Fixed Asset process (see button below)
2. While in Asset window , set depreciation information such as:
Check Depreciate box
Set depreciation method*
Set amount of usable life years and life use in months for first year
Life use
Maintenance information (if required)
Purchase Date
Price
Depreciation methods* :
Linear depreciation. Assets will depreciate by equal proportions for every time period or interval for the entire service life of the fixed asset.
Accelerated depreciation. Assets reduce their book value at a faster rate than it would by using the linear method. Allows companies to receive a higher depreciation deduction today, in order to reduce its tax bill. This deduction is especially helpful for new businesses who may be having short-term cash-flow problems.
3. Now go to Asset Depreciation window to calculate the current depreciation to complete this process. Here you can look for existing depreciation documents by entering document number, depreciation method or date range and you can also create a new one. Click on new record to create a new document:
Now fill header information such as description and date and Save. After saving click Process (gear icon) to add the pending assets to this document:
Assets will be added to the detail of this document. To complete this process, click context menu and Document action:
This will calculate the accumulated depreciation for each asset and will then help you create the accounting entries for these assets. To complete these accounting entries click on Account button and confirm:
We hope this improves your Cirrus experience. Remember to share this information and ask for help if you need it.
Date: June 16, 2022.