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

• Determine Number of Months of Service Life (MSL):  Service Life*12 = MSL
• Determine Date of Last Full Month (LFM) This finds the current date and find then finds the first day of this month:  e.g. if System Date = 4/7/2005 then LFM = March 31, 2005; if System Date = March 31, 2005 then LFM = February 28, 2005.
• Determine First Month of Depreciation (FMD) and set to the first day of that month. This takes the Received Date and finds the first date of that month.:  e.g. April 14, 2001 would be set FMD to 4/1/2001 and April 16, 2001 would be set to 5/1/2001.
• Determine months of Depreciation time (MD): Count of months between LFM and 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.