Build a fixed asset register and depreciation schedule
Sets up a fixed asset register with useful lives, methods, and monthly depreciation, and flags items that shouldn't be capitalized.
The prompt
Help me build a fixed asset register and depreciation schedule.
Assets purchased or held: [PASTE - description, purchase date, cost, in-service date, location]
Capitalization threshold: [e.g. "$2,500 per item"]
Book depreciation policy: [method and useful lives by class, or "help me propose one"]
Framework: [US GAAP / IFRS / local GAAP]
Disposals or impairments this year: [DETAILS or "none"]
Fiscal year end: [DATE]
Steps:
1. Classify each asset (e.g. computers, furniture, vehicles, leasehold improvements, software) and check it meets the threshold.
2. Flag items that look like repairs or maintenance, items that should be bundled (e.g. 20 laptops bought together), and leasehold improvements whose life should be capped at the lease term.
3. Apply the policy and calculate monthly and annual depreciation, starting from the in-service date (state the convention used - full month, half month, etc.).
4. For disposals, calculate accumulated depreciation to date and the gain or loss.
Return:
1. The register: Asset ID | Description | Class | In-service date | Cost | Life | Method | Monthly depreciation | Accumulated depreciation | Net book value.
2. A summary by class that ties to the general ledger accounts.
3. The journal entry for this period's depreciation.
4. Open questions.
Tax depreciation (e.g. bonus or Section 179 in the US, capital allowances elsewhere) follows different rules - list it as [TAX PREPARER TO CONFIRM] rather than calculating it.
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Finance & Accounting prompts
What to fill in
- e.g. "$2,500 per item"
- method and useful lives by class, or "help me propose one"
- US GAAP / IFRS / local GAAP
- DETAILS or "none"
- DATE
- TAX PREPARER TO CONFIRM
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
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