Inventory Menu Option "0"
When you go into this all the agents will be shown in a list. Highlight the agent you wish to edit and push ENTER. You can put in a depreciation type and set a last depreciation run date. These settings should only be used for Rental Agents. You can also delete an agent but note that any inventory loaded under the deleted agent will not be changed automatically and you will not be able to run an inventory report by this agent. To delete an agent push F4 on the Edit Agent screen.
Depreciation Types: Currently there are 3 types of depreciation to choose from, an explanation of each is below. You should consult with your Accountant to determine which type to use.
Term of Lease: Straight line depreciation over the term of the original lease or rental. Example: if a TV cost is 180.00 and it is rented out for 18 months then the depreciation would be 10.00 per month every month, even if it returns to stock. This is the way that you would usually be paying for merchandise if you have a Rental Floorplan with a finance company.
Modified Term of Lease: This is just like the Term of Lease except no depreciation is taken when the unit is in Stock.
MACRS GDS 200DB HY Convention 5 Year Recovery Period: This stands for "Modified Accelerated Cost Recovery System" "General Depreciation System" "200 Declining Balance" "Half Year Convention" 5 Year Recovery Period. This is the type of depreciation that was commonly to be held acceptable by the IRS for a Rent-To-Own business before 1997.
MACRS GDS 200DB HY Convention 3 Year Recovery Period: This stands for "Modified Accelerated Cost Recovery System" "General Depreciation System" "200 Declining Balance" "Half Year Convention" 3 Year Recovery Period. This is the type of depreciation that my Accountant tells me the IRS say’s a Rent-To-Own business should be using starting in 1997 to depreciate rental merchandise. But always consult with your Accountant or the IRS before deciding which to use.
If you need another type of depreciation that is not listed contact tech support.
ALL AGENTS
There is a special agent you can add and name "ALL AGENTS". If you wish to use this agent it will depreciate all inventory on 1 report. If you use this agent it should be your only agent that is setup to depreciate. This is useful for when you wish to use the inventory agent field for something like a vendor or supplier name.