Add a new laptop for each employee that you plan to hire
In order to ensure that you have captured the full cost of bringing on new staff we need to build out drivers for things such as new computer equipment.
This is done by creating a CapEx Asset and associating a driver to the asset. The output of what we create will incrementally increase the Fixed Asset Balance Sheet account. Jirav will do the depreciation schedule for you with the correct expense hitting the Income Statement as well as accumulate the deprecation.
Create the CapEx Asset within Plans->Drivers
As you can see in the screen shots above we have the following:
- Name - Computer Equipment - this is what we will use to reference when we create the Driver
- Asset Account - tells Jirav which account to increase
- Asset Contra Account - this is accumulated depreciation
- Expense Account - the Income Statement account you use to expense depreciation
- Expense Department - the specific cost/profit center you would like to associate the depreciation expense to
- Amort Period - this tells Jirav how many months to amortize the fixed asset over
- Asset Cost - the expected cost of the asset
- Residual Value - the future value of the asset that you believe you can sell the asset for at the end of the assets life or amortization period
- Amort Delay - this would be used when you purchase an asset and have to place the asset into service and would like to delay the depreciation of the asset
- Amortized Value - the total amount of the asset that will be depreciated
- Monthly Amortization - the amount of the asset that is expensed
Create a CapEx Driver to purchase computer equipment for each new hire.
The driver in the screen shot above is based on "Staffing - Headcount New # - All - All" multiplied by a constant of 1.
The screen shot below further details how within the driver you can see there is a dropdown in the Asset column to select the CapEx Asset we created within Step 1 above. Additionally, the output type is "Incremental" since we are adding computer equipment for each new hire.
To review the driver we can see that from December 2018 to January 2019 we planned to add five staff resulting in an increase of $17,500 to the fixed asset account.
Additionally we can see that in February 2018 Jirav is reflecting $486.11 in accumulated deprecation which is $17,500 divided by 36 which is the amortization period we set.