FirePro's latest tool, The Depreciated Value and Replacement Cost Calculator, calculates both the estimated current value as well as the estimated replacement cost of a vehicle in Inventory.
The depreciated value calculator works by taking the original cost of the vehicle and purchase date and subtracting a percentage of the price each year in order to estimate the current value of the vehicle.
The replacement cost is calculated by taking the purchase date and original price and adjusting for inflation since purchase in order to estimate the replacement cost of the vehicle.
To calculate your vehicle’s depreciated and replacement costs, you’ll need to have certain information entered.
Enter the vehicle’s purchase date and cost at time of purchase, then save your change with the green checkmark to see your estimated depreciated value and replacement costs.
As years pass, these costs will automatically adjust.
To see a report showing your vehicle costs, choose Inventory Accounting from the printer icon in your record list window.
The depreciated value is defaulted to 7% each year for the first 8 years, then 10% for each additional year.
The replacement cost is defaulted to 5% inflation per year.
These values can be changed to suit your needs by going to Set-Up-->Custom Settings and going to the Inventory tab.