This optional module provides the user with the ability to depreciate assets based on the production of that asset rather than a specified number of years. For each asset you can enter monthly production like this:
You can manually select the month and year of production and then enter the units produced for that period. There is also an option to import monthly production from an Excel spreadsheet to streamline the process.
The Units of Production depreciation method is very accurate for charging depreciation since it is directly based on the wear and tear of the asset. Click here to see the units of production formula and a sample calculation. Depreciation will be higher when the asset is in active production and lower during periods of inactivity.
Manufacturing and mining companies often employ units of production depreciation for specialty equipment and natural resource extraction equipment. This method is typically limited to more expensive assets since it requires the recording of monthly asset usage and an estimate for total usage over the life of the asset.
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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can register for our live webinar, download a free evaluation copy and get a personalized pricing estimate.