Updating of a fixed capital
However, the task of managing a physical inventory of fixed assets can seem daunting, and that’s where Sage Fixed Assets—Tracking can help!
Sage Fixed Assets—Planning is designed to help you account for everything, and it allows you to manage as many projects as you need, regardless of the type or size.
The weighting of such factors, which is defined by the realized degree of importance of each component in the specific index (or sub-index), aims to represent the costs variations typically found for chemical plants.
To update an item cost (equipment, projects) from period A to period B, is necessary to multiply period A’s cost by the ratio of period B’s index over period A’s index, according to the following equation: As a rule-of-thumb, cost indexes permit fairly accurate estimates for cost escalation if the difference between period A and period B is less than 10 years.
Louis; https://fred.stlouisfed.org/series/A262RX1Q020SBEA, September 2, 2019.
And when the assets are ready for use, they can be easily created in Sage Fixed Assets—Depreciation.
To help you easily manage and report on your construction-in-progress projects, Sage Fixed Assets—Planning has multiple levels of detailed tracking, including over 45 user-defined fields, as well as numerous built-in reports such as project status and actual vs. In addition, you can easily manage both capitalized and expensed assets and get key project information at a glance with “Project Snapshot".
Thanks to an intuitive user interface, Sage Fixed Assets—Depreciation gives you the flexibility to manage the entire fixed-asset life cycle—from acquisition to transfers and disposals—for both public and private organizations.
And with advanced fixed-asset accounting and reporting features, Sage Fixed Assets—Depreciation can help you prepare your year-end financials, allocate costs, calculate depreciation, eliminate redundant data entry, and store digital images of key asset records such as purchase orders, warranty information and insurance records.
Differences between the actual equipment and labor prices and those predicted by the index tend to grow over the years, surpassing the typical error verified in budget-level estimates.