Question: I have an asset that I must track but I do not take depreciation on it. How would I set that up in MIP?

There are two ways to set up an asset that does not depreciate. The difference depends on if you must track the value of the asset and remove the value of that asset from your books on disposal.
 
Method 1 – Zero Book Value.
If you do not need to track the value of the asset, then you can check the Zero Book Value tag when setting the asset up.



If you do this you will not be able to enter any information in the depreciation tab.


This would be used for assets that you simply have to track for inventory purposes. When you dispose of them there will be no accounting effects.
 
Method 2 – No Depreciation
 
If you need to track the value of the asset but never do any depreciation on the asset then you need to set the asset up with a Depreciation Code of “No”.
 
To do this go to Maintain>Fixed Assets>Asset Type. Set up a new Asset Type ID (unless you already have one) and make sure the Depreciation Code is selected as “NO” for No Depreciation Calculation.



When you set the asset up in the asset type tab use this Asset Type ID.


On the depreciation Tab you can only enter the Cost or Basis.


When you dispose of this asset the Cost or basis will be included in the disposal reducing the value of your asset account.