Cost Tab

Field Name

Function

Purchase Date

Enter the date the building was purchased.

Purchase Amount

Enter the amount of money the building cost when purchased

Received Date

Enter when the building was taken possession of.

Service Life

Enter the number of years that the building is expected to be used before being retired.

Dep. Date

This the date that the building will no longer be used. It is auto-calculated by taking the Purchase Date + Service Life = Depreciation Date.

Salvage Value

This is how much money the building can be sold or salvaged for.

Dep. Amount

The current worth of the Building, auto-calculated using the following method:

• Determine the number of Months of Service Life (MSL):  Service Life*12 = MSL
• Determine the date of Last Full Month (LFM) by noting the current date and determining the last day of the previous month. For example, if System Date = 4/7/2005 then LFM = 3/31/2005; if System Date = 3/31/2005 then LFM = 2/28/2005.
• Determine the First Month of Depreciation (FMD) by looking at the Received Date. If the Received Date is during the first half of the month (14th and before) that month is used. If the Received Date is during the second half of the month, the system considers the next month the FMD. For example, a Received Date of 4/14/2001 would set the FMD to 4/1/2001. A Received Date of 4/16, 2001 would be set to 5/1/2001.
• Determine the Months of Depreciation (MD): LFM - FMD = MD
• Final calculation: [MD(Purchase Amount - Salvage)]/MSL = Depreciation Amount

Book Value

Reflects the remaining value using the following calculation:

Purchase Amount - Depreciation Amount = Book Value

Replace Cost

This is how much the building will cost to be replaced.