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3 Things Needed to Implement Vision Asset Management

The new Vision Asset Management module, available with Deltek Vision® 7.5, makes it easy to manage your fixed assets. But before you jump in, it’s
helpful to know a few things upfront:

You may need the Vision Purchasing module

If you need to track equipment—fixed assets that get charged to revenue-producing projects—then you’ll need the Vision Purchasing module,
if you aren’t already using it. However, if you’re only tracking assets that get charged to overhead, you won’t need the Purchasing module. Either
way, when you commit a purchase order, the asset is automatically created in the Equipment Info Center, so there’s no need to re-key information
into another system or spreadsheet.

You need to determine your depreciation method

You’ll need to decide which of these methods to use. The total amount of depreciation is identical no matter which depreciation method is used;
the method only alters the timing of your depreciation recognition.

STEADY DEPRECIATION

The advantage of using a steady depreciation rate is that it’s easier to calculate. The most common method for steady depreciation is the straight-line method, because it’s simple, resulting in fewer errors. If you want to depreciate
an asset based on its actual usage level, then use the units of production method.

ACCELERATED DEPRECIATION

The advantage of using an accelerated method is that you can recognize more depreciation early in the life of a fixed asset, which defers some
income tax expense recognition. Examples of accelerated depreciation methods are double declining balance and sum-of-the-years digits.

You need to know the useful life

This is the time period over which you expect the asset to be productive. The IRS has already done the heavy lifting for you by creating a chart with the allowable useful life for various assets.

If you have questions about managing fixed assets or implementing Vision Asset Management, contact your CCG consultant or email me at DeEtte.Krogh@centralconsultinggroup.com.

ADDITIONAL RESOURCES

Vision Asset Management web page

Vision Asset Management Video

About the Author: DeEtte Krogh, CPA

DeEtte is a Principal Consultant at CCG. Her 20+ years of accounting and financial management experience include working in an architecture
and engineering firm that used Deltek Vision, so she understands all facets of Vision accounting.


 

 

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