Amortizations

The amortization table is created and assigned to the product. Although the parameters are assigned by product, there are options in Master Data>Entity to assign the parameters directly to the entity if the default parameters need to be overridden. Amortizations is used by period end to calculate the depreciation expense.

Table Name: BimAmortizations

Further details can be located in the defined depreciation methods:

• Depreciation - Percentage

Amortizations are used in the following:

• BMTS>BIM Entities
• LMTS>BIM Entities
• LMTS>LIM Entities
• TMTS>BIM Entities
• Period End Depreciation Task

Create an Amortization Definition

The amortization screen is divided into two sections:

• Amortizations - defines the product and the parameters relating to the amortization table.
• Amortization Data - grid to enter the curve data that calculates the depreciation amount.

1. In Admin>Business>Poultry>BIM, select Amortizations.
2. Select to create a new amortization table.

Amortizations

Amortizations defines the parameters related to product and amortization method.

1. Enter the Amortization No to identify the amortization table. (alphanumeric, max 20 characters)

2. In the Amortization Name, enter the description for the amortization table.  (alphanumeric, max 50 characters)

3. Select the Animal Product No from the drop-down list of available products. If the Depreciation Schedule Mode is set to By Product or By Flock, the amortization table will be applied to any entity with the defined product unless overridden by an amortization table that is assign to a specific entity.

4. The Product Name will be derived from the selected Product No.

5. Enter the Female Livability percentage. This value will be used to determine the inventory for salvage value for the entity if the Amortization Salvage Mode is set to Projected End of Flock Inventory.

6. Enter the Male Livability percentage. This value will be used to determine the inventory for salvage value for the entity if the Amortization Salvage Mode is set to Projected End of Flock Inventory.

7. Female Salvage Weight is populated if the Salvage Value Basis = Weight. Enter the estimated female processing weight in pounds or kilos depending on the unit of measure assigned to the Division.

8. Male Salvage Weight is populated if the Salvage Value Basis = Weight. Enter the estimated male processing weight in pounds or kilos depending on the unit of measure assigned to the Division.

9. Female Salvage is the rate used to calculate the female salvage value used to calculate depreciation basis. The value depends on the Salvage Mode Basis.

   • Head - calculates the salvage value based on a dollar amount per head.

   • Percentage of Capitalization Value - depreciates a percentage of the capitalized value of the entity. For example, if the capitalized cost of the entity is $100,000 and the percentage is 25%, the depreciation expense for the entity will be 75%.

   • Weight - calculates the salvage value based on a dollar amount per lb or dollar amount per kg depending on the unit of measure utilized by the Division.

    

10. Male Salvage is the rate used to calculate the male salvage value used to calculate depreciation basis. The value depends on the Salvage Mode Basis.

    • Head - calculates the salvage value based on a dollar amount per head.

    • Percentage of Capitalization Value - depreciates a percentage of the capitalized value of the entity. For example, if the capitalized cost of the entity is $100,000 and the percentage is 25%, the depreciation expense for the entity will be 75%.

    • Weight - calculates the salvage value based on a dollar amount per lb or dollar amount per kg depending on the unit of measure utilized by the Division.

     

11. Amortization Basis is used in the HE/HH method only and specifies the expected Accumulated HE per HH at the end of the flock.

12. Amortization Weeks specifies the number of weeks from capitalization to the final date that amortization will be calculated for each entity.  This value overrides the number of weeks in the Amortization Schedule for the Percentage Method.

13. The Active flag will default as selected. If the amortization table is no longer used, de-select the active flag.

Amortization Data

The Amortization Data grid is used to enter the values for the depreciation curve by week.

1. Click on the Amortization grid and select to add a new Week.
2. In the Rate field, enter the percentage for the weekly depreciation. The total of all weeks must equal 100.00%. If the weeks in the Amortization Data grid do not match the number of weeks in the amortization table, add or delete the required number of weeks. The total of all weeks must still equal 100%.