58 Set Up Units of Production Schedules
This chapter contains the topic:
Set up units of production schedules only if you use the Units of Production method of depreciation (method 09). You can set up schedules by ledger for as many different units of measure that your company uses, such as tons or miles.
58.1 Setting Up Units of Production Schedules
From Fixed Assets (G12), enter 27
From Fixed Asset Advanced Operations (G1231), choose Units of Production Schedule
The system performs two calculations based on the schedule information that you enter:
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Depreciable Unit Base - Original Units + Prior Year Revisions + Current Year Revisions - Units Produced in the Prior Year = Depreciable Unit Base
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Current Units of Production - Units Produced Year-to-Date / Depreciable Unit Base = Current Units of Production
After you set up the units of production schedules for your system, you can print the Unit of Production report.
To set up a units of production schedule
On Units of Production Schedule
Figure 58-1 Units of Production Schedule screen
Description of "Figure 58-1 Units of Production Schedule screen"
Complete the following fields:
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Schedule Number
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Ledger Type
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Description
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Units of Measure
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Units - Original
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Units - Prior Year Revisions
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Units - Current Year Revisions
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Prior Years Production
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Year-to-Date Production
| Field | Explanation |
|---|---|
| Schedule Number | The alphanumeric code you assign to a units of production schedule. You must set up the schedules you want to use for method 09 (Units of Production Depreciation) in advance on the Units of Production Schedule screen. |
| Ledger Type | The user defined ledger type code (list 09, type LT) that identifies the account ledger, or book, for the asset. You can maintain as many sets of depreciation books (ledger types) for an asset as you need so you can depreciate an asset in different ways for different purposes. For example, an asset might have a three-year life for tax purposes, but a five-year life for financial statement purposes. Each set of books can have different depreciation methods and depreciation values.
Form-specific information Each schedule you create is a combination of a unique schedule number and a ledger type. |
| Description | A user defined name or remark. |
| Unit of Measure | A user defined code (system 00/type UM) that identifies the unit of measurement for an amount or quantity. For example, it can represent a barrel, box, cubic yard, gallon, an hour, and so on. |
| Units - Original | The original estimate of the total number of units in the reserve base. The system uses this number to calculate the depreciable unit base. |
| Prior Year Revisions | The cumulative prior year revisions to the estimate of total units in the reserve base (Units-Original). The system uses this number to calculate the depreciable unit base. |
| Current Year Revisions | The current year revisions to the estimate of the total number of units in the reserve base (Units-Original). The system uses this number to calculate the depreciable unit base. |
| Prior Years Production | The number of units produced in all prior years. This number determines when an asset is fully depreciated. The system uses this number to calculate the depreciable unit base. |
| Y-T-D Production | Units that were produced year-to-date. You must manually update this field. The system uses the value in this field to calculate the Current Unit of Production Factor. |
58.1.1 What You Should Know About
58.1.2 Printing the Units of Production Report
You can print the Units of Production report to view all of the schedules that you have set up for the Units of Production depreciation method. You can use this report at the jobsite as a worksheet. For example, you can complete the production and revised unit reserves for your assets and then return the information to the main office.
You can run the units of production report by one of the following:
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Schedule number
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Ledger type
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Unit of measure
Run the Units of Production report to review the following information:
| Information | Description |
|---|---|
| Original Units | The original estimate of the total number of units in the reserve base |
| Prior Year Revisions | The cumulative prior-year adjustments to the original estimated units |
| Current Year Revisions | The current year adjustments to the original units |
| Units of Production Prior Year | The number of units produced in all prior years |
| Depreciable Units | An amount used to calculate the Current Unit of Production Factor. The system calculates this number using the following formula:
Original Units + Prior Year Revisions + Current Year Revisions - Units of Production Prior Year = Depreciable Units |
| Units of Production Year-to-Date | The number of units that were produced year-to-date is used to calculate the Current Unit of Production Factor |
