Products refer to the commodities purchased by your organization. For instance, the workstation “Latitude D600” is a Product with the Product Type "Workstation". You can either import the product details from a CSV file or manually add the products in the application. Configuring products are essential while adding assets in the Asset module and while purchasing products using the Purchase Order form.
As and when the firm purchases a product, the product details should be entered in the application. If a product is discarded, then you can remove it from the list by deleting the same.
Most of the products wear out and decrease in value, over a period of time. For such products, calculating the depreciation is essential for financial reporting. You can configure depreciation using any of the 4 methods provided in the application.
To access Product configuration wizard,
Click Admin tab in the header pane.
Click Products icon under Asset Management block. The Product List view is displayed. You can add products, edit and delete products, and configure depreciation for products.
In the Product List view page, click Add New Product link.
Choose the Product Type under which you want to classify the product. If you have selected the Product Type as Workstation, then you can select the product to be a desktop or a laptop. The Product Type is a mandatory field.
Specify the Product Name which will uniquely identify the individual products. Say, Dell Latitude D600. The Product Name is a mandatory fields.
Specify the Manufacturer of the product. Say, Dell.
Specify the Part No of the product.
If required, you can add relevant Comments for the product.
Click Save button. The product details are saved and listed in the Product List view. Click Save and Add New to save the product and add another product. You can associate any number of vendors to the product.
If the selected Product Type is an asset or component, then the Depreciation Details block is displayed. AssetExplorer allows 4 methods to calculate the depreciation of a product.
Methods of Calculating Depreciation
Double Declining Balance
Sum of the Years Digit
Before we begin configuring depreciation, there are certain terms related to depreciation calculation:
Useful Life: The period during which an asset is expected to be available for use.
Salvage Value: The estimated selling value of any asset, after it has reached the end of service life or its value has depreciated substantially. It is the total net worth of any asset after it has exhausted its useful life span.
To configure depreciation details while adding the product,
Select the Depreciation Method from the drop down box. If the Depreciation Method is Declining Balance, then the Useful Life radio button and Decline Percent radio button appears. If the depreciation method is Straight Line, then the Useful Life radio button and Depreciation Percent radio button appears.
Specify the Useful Life of the product. If you have enabled Decline Percent or Depreciation Percent radio button, then specify the Decline Percent or Depreciation Percent of the product.
Specify the Salvage Value of the product.
Click Save button.
If you have not configured the depreciation details for a product, then you can also configure it from the Product List view.
Select the check box beside the product for which you want to configure depreciation.
Click Configure Depreciation button.
Select the Depreciation Method from the drop down box.
Specify the Useful Life and the Salvage Value of the product.
Click Save button. The depreciation details is configured for the selected product(s).
The configured Depreciation Details can be viewed in the Costs tab of the Assets details page. The depreciation is calculated only if the Purchase Cost and Acquisition Date is specified for the asset.
Associating Vendors to Product
Click Vendors tab.
Choose the Vendor supplying the product from the drop down. The Product Name is in non-editable text.
Enter the Price of the product. The Vendor and Price of the product are mandatory fields.
Specify the Tax Rate (%) of the product.
Specify the Warranty Period by selecting the number of years and months from the drop down.
Choose the Maintenance Vendor.
If you wish to add any comments, add it to the Comments text box.
Save the changes.
In the Product List view, click the Edit icon beside the Product Name to edit. The product form displays the field values pre filled while adding the product.
Edit the fields in the form. You can also configure the Depreciation Details, if it is not configured for the product.
Click Save button. You can also add a new product by clicking Save and Add New button.
A product can be deleted only if it is not being referenced elsewhere. To delete a product,
In the Product List view, select the check box beside the product to delete.
Click Delete button. A dialog box confirming the delete operation appears.
Click OK to proceed. The product is deleted from the list.