# 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.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Plan, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/build-a-fixed-asset-register-and-depreciation-schedule

## Prompt

```text
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.
```

## 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

Free to copy and use. From ThinkWithPrompt (https://www.thinkwithprompt.com/), a library of 2,663 curated AI prompts.