17 Enter Units of Production

This chapter contains the topic:

Section 17.1, "Entering Units of Production."

You enter units of production to provide the system with the current production information it needs to compute depreciation based on the units of production method (Method 09).

You can use the Units of Production Schedule screen to track your original estimate of the total number of units in the reserve base, the total of your prior year revisions to the original estimate, and current year revisions to the original estimate. You can change these amounts as your estimates for production change throughout the year. When you run the annual close, the system automatically rolls the totals to prepare for the new year of estimates and revisions.

17.1 Entering Units of Production

Navigation

From Fixed Assets (G12), enter 27

From Advanced Operations (G1231), choose Units of Production Schedule

Note:

Enter units of production only if your company uses units of production to compute depreciation (Method 09).

You must enter units of production before you run the Compute Depreciation program. The system calculates the units of production depreciation for a period only if you update the year-to-date production amount for the period.

17.1.1 Before You Begin

Set up the units of production schedule

To enter units of production

On Units of Production Schedule

Figure 17-1 Units of Production Schedule screen

Description of "Figure 17-1 Units of Production Schedule screen"

Complete the following fields to locate a unit of production schedule:
- Schedule Number
- Ledger Type
Complete the following field to update the schedule:
- 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.
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.

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.

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.