Accounting Software
.
Prepaid Expenses
Deferred Income, Revenue
Fixed Assets, FF&E
Accrued Expenses
FASB 91
Effective Interest Method
Bond Premiums, Discounts
Loan Fees
Effective Rate Schedule
Excel Import
Paste Worksheet Data
Amortize Monthly
Amortize Days, Weeks, 4-4-5 
Consumption
Amortization
Allocate Amounts
Financial Data Support Systems, Inc.
Home Page
About Us
Contact Us
Technical FAQs
 
.
.
For
PC, laptop,
workstation and
shared devices
running Windows® 7,
Vista, XP, ME, NT and
other network versions
. 
Consumption
Amortization Software
Samples
Price
Free demo
..
.. 
 Monthly amortization and recognition of
Deferred Income, Revenue, Fees, Prepaid Assets, Expenses, Deferred Charges
determined as the GREATER of
     Straight line amortization or
     Balance remaining, monthly takedown, running consumption of
     •  Time
           - Hours
           - Days
           - Other increments
     •  Tangibles
           - Inventory
           - Products
           - Supplies, office or otherwise
           - Other physical count or takedown usage
     •  Dollars
           - Remaining balance
     •  Virtually any type of item with a declining life expressible in units
...
.
  Example: Consumption and Amortization by HOURS
A $24,000.00 prepaid fee covering 1200 hours of service over a 12 month term.
     Payer capitalizes the $24,000.00 deferral to a prepaid asset/expense.
         (a prepaid amount could just as easily represent the cost of  inventoried physical goods) 
     Provider credits the $24,000.00 deferral to an unearned liability.

Amortizing the fee on a straight line basis presumes a monthly consumption rate of 100 hours.
     Payer expenses $2,000.00 per month.
     Provider recognizes the same monthly amount as income.

However, what if hours (or any underlying value type) are reduced at a completely different rate?
     What if 312 hours are used the first month, followed by 228, then 367?
     What should the deferred balance be after three months when 907 hours have been used?
               $18,000.00?
               75% of the original deferral?
               When only 293 hours (less than 25%) remain outstanding?
               What if only one six hours remained?  Or none?

This software
•  Rectifies any disparity between anticipated and actual amortization
•  Maintains an equitable relationship between a deferral and its underlying basis
In the above example,
     the software would have recognized 78.58% (907/1200) of the $12,000.00 by the third month.
If less than 300 hours, including zero hours, had been used,
     the software would have recognized 25%, 3 months of 12 under a straight line basis.

.
 
 How it works
How it works
On a monthly basis, the software imports an Excel file and
     •  Calculates accumulated amortization of deferred dollars using a straight line basis.
     •  Determines which of the following is provided in the file:
          - Units consumed to date (hours in the above example) or
          - Units consumed for that month or
          - Units remaining.
     •  Calculates the percentage of units consumed to date compared to total beginning units.
     •  Recognized the greater of the two calculation results as accumulated.
     •  Reads a history file it created "as of" the previous month.
     •  Establishes the amount to book to the general ledger this month:
          Difference between last month's history accumulated and this month's new accumulated.
......Excel allocation software to distribute one or more amounts of any type to multiple recipients such as branches, department heads, projects, funds and virtually any other entity using one or multiple methods.

 


 



 


 



 


 
 



 


 



 

  Price and free demo
Evaluate a free demo, available as
     •  Download from website
     •  Email attachment
     •  Microsoft wizard .msi file or non-installing .zip file
     •  With our standard demo records or samples of your operation

Please contact us for
     •  Price page
               (contains a link to download the .msi wizard demo with standard records)
     •  Free demo with Excel worksheet
     •  Questions related to this software
Email Support@FDSSI.com
...

Site Index
Contact Us Page
About Us
Top
Software for Windows® PC, laptop, workstation and network sharing by
Financial Data Support Systems, Inc. Copyright © 1995 - 2010