Understanding Asset Budgeting Concept Understanding Asset Budgeting Understanding
Understanding Asset Budgeting Concept
Understanding Asset Budgeting
Understanding Asset Budgeting Step 1 A fixed asset is tangible property used in the operations of a business, but not expected to be consumed, or converted into cash in the ordinary course of events. Plant facilities, machinery and equipment, furniture and fixtures, and leasehold improvements constitute the fixed assets of most companies. They are normally represented on the balance sheet at their net depreciated value.
Understanding Asset Budgeting Step 2 If your organization plans on purchasing assets during the coming budget year, you may wish to account for the asset cost and depreciation when preparing the budget.
Understanding Asset Budgeting Step 3 The starting point for developing a capital budget includes existing assets and the depreciation expenses associated with them. You establish this starting point by importing existing assets and depreciation expense data from People. Soft Enterprise Asset Management or another application.
Understanding Asset Budgeting Step 4 Performing asset budgeting requires that you identify default asset related accounts, establish asset profiles, cost and depreciation defaults, and an asset's useful life and salvage value.
Understanding Asset Budgeting Step 5 This concludes the understanding asset budgeting topic. End of Procedure.
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