Capital Asset Planning is a driver-based planning tool. You can set drivers by establishing global assumptions for each asset class (for example, buildings or machinery) or for all tangible or intangible assets.
Assumptions you can set:
Useful life of assets
Depreciation methods
Depreciation conventions
Amortization methods
Insurance, repair, and maintenance expenses
Depreciation rates for declining balance methods
Cash flow incidence, which determines cash flow impacts and allocations for asset purchases
Funding options for asset requests
To establish global assumptions:
Open data form 01. Global Capital Assumptions (see Logging On and Accessing Capital Asset Planning).
Set assumptions for the drivers.
For permissible values, see Predefined Smart Lists.