Request for Estimate

Provided By Customer 10/1/2018

Sage Caremount Medical Page: 1

SAGE EM – Handling of Bonus Depreciation

Request for Estimate

Business Issue:

Caremount Medical needs to address the management of Section 168, Bonus Depreciation. A
bonus depreciation is a tax incentive that allows a business to immediately deduct a large
percentage of the purchase price of eligible business assets. This type of incentive is offered
either as an additional incentive or as a measure of relief for small- to medium-sized businesses
that want to buy additional equipment.

Currently SAGE EM does not handle FA Bonus Depreciation out of the box, so Southeast
Computers Solutions was charged with finding a workable alternative with minimal changes,
requiring the less amount of modifications to SAGE EM. The requirement was the ability to
change the amount depreciated in a given year, and that this modification impacts in the
depreciable value (rest of usable life), reducing the monthly charges to Depreciation Expense.

In order to achieve the required business need, we plan to make us of the Fixed Asset
functionality ‘Revaluation’. This revaluation allows the change of the bae value (after the Bonus
Depreciation is performed), hence allowing the users to continue with the normal management of
the Asset with the new value, reducing the depreciable amount.

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 Request for Estimate
Provided By Customer 10/1/2018
Sage Caremount Medical Page: 2

SAGE EM – Handling of Bonus Depreciation

One of the requirements of Caremount Medical is the ability to mass update the assets. To this
effect, we proposed to use the ‘Revaluation’ process in the ‘Processing / Depreciations’ area:

This mass processing allows Caremount Medical to export all items in order to process outside
(in Excel) and calculate the bonus depreciation to be applied.

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 Request for Estimate
Provided By Customer 10/1/2018
Sage Caremount Medical Page: 3

SAGE EM – Handling of Bonus Depreciation

One feature that the customer will need is the ability to mass update the revaluation selection
done on the previous step, after it’s calculated in Excel. This import will update the asset’s value,
and from that point on SAGE EM will proceed with the revaluation and generate the automatic
entries associated with the process.

The Accounting Codes for revaluation of the assets will have to be updated to use the Fixed
Assets and the accrued depreciation accounts; the customer to determine if the Bonus
Depreciation expense will be stored in a separate GL expenses account.

Estimate:

Estimate Document Approved by Customer-

___________________ _______________________ _______________

Customer Name Customer Signature Date

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