Review Useful Life for Depreciated Assets
Purpose: The Office of Financial Management (OFM) occasionally changes the Useful Life value for a selected Commodity Code. This export report provides the current Useful Life Value for each asset alongside the current value in the SAAM manual.
Audience: Business office personnel that maintain depreciation records for capital assets.
The State Board will notify Megamation of any updates to the SAAM manual as they occur so the commodity code table will stay current, but any existing DirectLine records will not be automatically altered.
When that happens, the affected asset in DirectLine needs to be updated with the new Useful Life and any adjusting accounting entries made.
Navigation: FAE Module / Export Reports / Equipment Inventory - Lifespan
From the DirectLine main menu:
- Select FAE Inventory
- Select Export Reports
- Select Equipment Inventory - Lifespan
- Select OK
You have the option of sorting or filtering on a variety of criteria before clicking Export. The results will display in a list like this:
You can apply Excel formulas to compare the "Life Span" and "Useful Life Expected" for any differences.
If you identify assets that need to be updated, navigate to the module for that asset (most likely Equipment Inventory)
- Navigate to Eqp Inventory
- Select Eqp Inventory
- Select Eqp Inventory Info
- Select Eqp Inventory Entry
- Use information from your extract report to enter the asset ID
- Select FAE/Cost tab to display the Commodity Code and Life Span fields
You'll notice the Life Span field is gray and not available to edit. You have to use the Commodity Code field to input your corrections.
- Delete any data in the Commodity field and click out of the field
- Use the Commodity Code drop-down list and select your item. DO NOT type in the Commodity Code!
- You will notice the Life Span field is updated to the current value assigned by OFM in the SAAM manual.
Any changes to the useful life values will change the depreciation calculations. You'll see a warning message reminding you as much and to run a fresh CR2128 and make note of the entries in the "Differences" columns.
You can keep a copy of the Excel workbook along with the CR2128 as your supporting documents for your year-end adjusting entries.
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