Asset Configuration reference data

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The tasks below can only be performed by users assigned to the Admin or Budget Process Owner roles. For additional information on roles, see Frontdoor permissions and roles.

Watch this video from Apptio Education Services: Configuring Reference Data: Contract & Asset Dimensions.

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Dimensions are the essential data categories in budget line items. Many built-in dimensions have dependencies on other dimensions (see Reference data attribute and dimensions dependencies for more information). You can import dimensions reference data from a .csv file or from Costing Standard and export dimensions reference data templates and table data (see Manage dimensions).

Asset Class reference data controls how capital asset purchases and depreciation are accounted for in OpEx and CapEx budgets. For example, you can specify that a given asset class always accrues to a specific CapEx purchase account and an OpEx depreciation account.

  1. Enable Assets (see Edit the Company Profile).
  2. In the navigation menu, select Configuration > Reference Data > Asset Class.
  3. Select in the top right corner of the table, select Export > Export All.
  4. Open the downloaded .csv file and update the data values as required:
    • Asset Class - Asset class category name
    • Depreciation Account - OpEx account that accrues the depreciation expense of the selected asset class
    • Depreciation Method - Model used to predict the decline in value over time for the asset class. For more information, see Plan for decreasing asset values with Depreciation Methods.
    • Purchase Account - The CapEx account that accrues the purchase expense of the selected asset class
    • Asset Life (months) - The standard depreciation lifespan of the asset class
    • Residual Value % - The percentage of purchase price to be calculated as residual value for the asset class
    • Balance Rate (%) – The declining balance rate to be applied for annual declining balance depreciation. For this depreciation method, the balance rate will be applied to the asset’s value each year. For example, an asset with a purchase price of $100,000 that depreciates with a balance rate of 40% would depreciate $40,000 in its first year.
  5. Now, Configuration > Reference Data > Asset Class, and then import the updated .csv file.
Tip: You can add custom attributes to asset dimensions to capture supplemental information about assets to enhance your analysis and reporting capabilities. To learn more, see Add and manage custom attributes of reference data (dimensions and line-item tables).

Formulas to calculate amortization for each of the listed depreciation methods

Straight Line uses the formula:

  • Depreciation Amount = (Asset Price * (1 - Residual Value)) / Asset Life
  • Asset Life = Duration in Months or Days

Double Declining uses the formula:

  • Depreciation Amount = 2 * ( 1 / Asset Life) * Beginning Period Book Value
  • Asset Life = Duration in Months or Days
  • Beginning Period Book Value = Asset Price - Accumulated Depreciation

Declining Balance uses Balance Rate to calculate each period:

  • Depreciation Amount = Asset Balance * Balance Rate / 12
  • Newly calculated at beginning of each year: Asset Balance = Asset Balance - Asset Balance * ( Balance Rate / 12 ) * # Months Depreciated in previous year

Example

Asset Price = $40K

Asset Life = 12 months

In Service Date = 1/15/2024

Straight Line (P1 FY24) = $40K * (1 - 0) / 12 = $3333

Double Declining (P1 FY24) = 2 * (1/12) * ($40K - $0) = $6667

Double Declining (P2 FY24) = 2 * (1/12) * ($40K - $6666) = $5556 (edited)

Note: Double Declining calculates the Book Value at the beginning of each period instead of at the beginning of the year. So if you want to model a standard Double Declining (twice the rate of straight line) then you should use Declining Balance with a Balance Rate = 200%.