Capital Asset and Asset Depreciation Budget Template The Capital

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					2009 Capital Asset and Asset Depreciation Budget Template

The ‘2009 Capital Asset and Asset Depreciation Budget Template’ (located on the Finance Division
Web Page) has been developed to assist in planning for asset purchases and calculating the budgeted
depreciation of each asset and asset class.

The process is as follows:-
   1) A SAP Depreciation Simulation report is run for all existing assets. The report provides the
       forecast for 2009 depreciation amounts for all existing assets. This information is entered into
       the spreadsheet “input from SAP” report by asset class.
   2) Movement from the time the report was run to the end of the 2009 budget year is then recorded
       in the spreadsheet, by asset class to determine the total depreciation for the 2009 budget year.
   3) For capital budget purposes the total amount of assets planned to be purchased in 2009 is
       required in column D.

Calculation of depreciation for assets, or a group of similar assets, with a value greater than
1. Enter a description of each asset to be purchased in the column marked ‘DESCRIPTION’, above the
appropriate category.

2. Enter the total purchase amount of the asset in the column marked ‘ASSET VALUE’.

3. Indicate in column G the source of external funding for the asset, if one exists. For example,
‘research grant’, ‘state govt. grant’. Leave blank for assets which have no specific external funding

4. Enter the expected month of purchase in the format JAN, FEB, MAR etc.

5. For existing assets, enter in the row marked ‘Existing Assets’ the total depreciation expense for the
cost centre’s existing assets. This amount is found in the bottom line of the SAP report ‘Depreciation
Simulation – 01 Book Deprc’.

The remainder of the fields are self-calculating fields and show the depreciation on a monthly basis as
well as the depreciation for the total year.

6. Note that asset purchases after the SAP Depreciation Simulation report is run (ie in the remainder of
2008) will not appear in the depreciation calculation run from the SAP report. Depreciation on any
such assets should be included in the ‘Existing Assets’ section of the template and can be calculated
using the formulae in the template for 2009 assets. Please do not include these assets in the 2009 asset
submission list.

7. For each asset class enter asset purchases in 2009, column D. This information will be used to
develop the University’s Capital Budget. It will also be used by the MBU and is required to be loaded
in the Funds Management Module in SAP; capital expenditure, commitment item 150888.

8. Insert the total depreciation amount by asset class into the Budget template/CO Excel Planning in
the Controlling Module of SAP.