Tag Archives: depreciation

Item Depreciation with SIMMS 2013

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A major requirement for accuracy in your accounting and inventory management is accurate calculation of the depreciation of items. Calculation of depreciation makes it easier for you to rotate stock to full advantage and know which items bring the greatest returns.

This detail of asset management is fully integrated into SIMMS 2013’s Inventory management software to match your needs while concurrently eliminating redundant data entry.


Information available through this module enables you to forecast next year’s depreciation expenses by employing SIMMS Accounting modules, allowing the allocation of the depreciation for groups of assets – or individual assets – to more than one source of funding.

With SIMMS 2013, you can:
 

• Assign depreciation-related fields either individually or globally within the system

• Calculate depreciation annually, quarterly or monthly

• Comply with both GASB (Governmental Accounting Standards Board) 34 and 35 requirements.

• Control access to depreciation data through SIMMS 2013’s built-in User Rights Protection

• Develop custom reports or use built-in reports to acquire the data you require

• Employ both standard and customized depreciation methods

• FIFO By Location warehouse data is automatically updated with each adjustment

• Generate automatic journal entries

• Implement depreciation of assets from the month of receipt

• Review your Depreciation History table, which updates automatically with each transaction

• Seamlessly integrate with the rest of SIMMS 2013’s suite of Modules

A decreasing Depreciation to Fixed Assets ratio may indicate that your company’s purchase plans for new fixed assets has stalled, and may also indicate an increasingly constrained budget or a lack in the priority of gaining new assets. Businesses in industries whose operations need large purchases of assets that will also depreciate rapidly often can record higher amounts of depreciation than companies who either do not purchase many fixed assets, or instead purchase assets that are useable much beyond the time span of their depreciation.

Keeping depreciation in mind is an important edge your company can have on your competition, and SIMMS 2013 can help you master that information. Visit www.simmssoftware.com or email sales@kcsi.ca for more information today.

Tracking Depreciation with SIMMS

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Information available through the SIMMS Depreciation module gives you the power to forecast next year’s depreciation expenses through the use of SIMMS Accounting modules, which allow you to control the allocation of the depreciation for groups of assets – or individual assets – to more than one source of funding.

The tracking of depreciation makes it easier for you to rotate your stock to take full advantage of your turnover rates and to know which items bring the greatest returns. This aspect of asset management is fully integrated into SIMMS to suit your needs while simultaneously eliminating redundant data entry.

With the Depreciation Module you can:

• Allow assignment of depreciation-related fields either individually or globally within the system.

• Calculate depreciation monthly, quarterly or annually.

• Comply with both GASB (Governmental Accounting Standards Board) 34 and 35 requirements.

• Control access to depreciation data through SIMMS’ built-in User Rights Protection.

• Develop custom reports or use built-in reports to acquire the data you require.

• Employ both standard and customized depreciation methods.

• Manage FIFO By Location warehouse data is automatically updated with each adjustment.

• Generate automatic journal entries.

• Implement depreciation of assets from the month of receipt.

• Review the Depreciation History table, which updates automatically with each transaction.

• Seamlessly integrate with the rest of the SIMMS Software suite of modules

For more information on depreciation and SIMMS Inventory Management software, visit www.simmssoftware.com or email sales@kcsi.ca today.

Gains and Losses

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In terms of definition, gains or losses describe the incrementation or decrementation in the value of an asset or liability for an accounting period.

There are different types of holding gains and the types depend on the accounting system your business uses. Holding gains are most frequently used in inflation accounting and income measurement. Holding gains or losses can occur from depreciation, gearing adjustments, stock, or adjustments to monetary working capital, and gains can be of two types: realized (such as sold goods) or unrealized (such as stock). Realized gains or losses are recognized in the financial statements, and only in rare cases are unrealized losses recognized, such as with marketable securities and inventory applying the lower of cost or market value rule. However, permanent reductions in the value of assets (as for obsolete equipment) should be reflected in the accounts. It should be noted that if current cost financial statements are prepared, holding gains and losses would be reflected.

 

Holding gains (losses) are generally conceived as increases (decreases) in the replacement costs of the assets held during a given period. Both gains and losses accrue to the owners of assets and liabilities purely as a result of holding the assets or liabilities over time, without transforming them in any way.

For example, if a company holds bottles of wine in its inventory and that particular vintage becomes more expensive on the market, the replacement cost of the wine in the inventory increases as it has become more expensive for the company to replace its current wine stock. Hence, by the mere act of holding the wine in the inventory, the assets of the company rise in value.

Tracking your gains and losses are easy with SIMMS Inventory Management software. Visit www.simmssoftware.com or email sales@kcsi.ca today for more information.

All About Item Depreciation

Even the Price of Down is Up...

Item depreciation is an important concern of inventory. Rotation of stock and knowledge of which items bring the greatest returns is only accurate after you have calculated the items’ depreciation. This detail of asset management is fully integrated into SIMMS to suit your requirements while eliminating redundant data entry. Information available through this module enables you to forecast next year’s depreciation expenses by employing the Accounting Modules, allowing the allocation of the depreciation for groups of assets – or individual assets — to more than one source of funding and allowing automatic journal entries to be created.

 

On a per-month basis depreciation is applied from its first day in the warehouse and can be reported on monthly, quarterly or annually. Customized or standard depreciation methods can be employed, and the module complies with both GASB (Governmental Accounting Standards Board) 34 and 35 requirements, as well as allowing the protection of depreciation information amongst the users of the program.

 

Make your choice for accurate inventory assessment with the SIMMS Depreciation Module.

Contact KCSI to learn more today