Depreciation Forecasting and Modelling

RAM's forecasting module provides a tool that uses existing asset information and runs "what if" scenarios for future capital expenditure, relifes/revaluations and asset disposals to create depreciation projections. Accountants and finance teams can build any number of different strategic models and present the most cost-effective and tax-efficient capital budgets. Planning can be for any range of accounting periods, facilitating the production of accurate budgets for the immediate future year and for longer periods.

A state-of-the-art forecasting tool, it directly mirrors the asset register structure so as to remove the chance of error inherent in guess-work and complex spreadsheets. All that is necessary is to state a date range, enter future predictions and allow the software to run the calculations.

Key Features and Benefits:

• Allows users to see the effect of depreciation charges or events.
• Provides instant management/analysis reports for budget forecasts.
• Forecasts the effects of changes to depreciation policies.
• Enables users to carry out both historical and current cost forecasting as well as forecasting by cost centre.
• Provides complete management reports and analyses for budget models.

Depreciation Modelling

Supplementing the standard depreciation forecasting options available in RAM's core asset register, the module allows the user to see the effect on depreciation charges for events entered against both individual assets and categories of assets in the register.

The budgeted depreciation forecast allows acquisitions, disposals and relifes to be stated against groups of assets without requiring the user to specify precisely which assets will be affected. An example may be a user budgeting for the acquisition of a new machine tool within a specified accounting period. The effect on depreciation charges will be associated with the appropriate asset type (plant) and a report produced based on that calculation.

The system has the ability to carry out both historical and current cost forecasting as well as forecasting by cost centre (department). Various reporting capabilities are made instantly available, including Budget/Live variance reporting and the ability to run comparison reports, making this module the perfect complement to your fixed asset register.