Under the Uniform Capital Allowance (UCA) system, an asset's cost is composed of two elements:

the first element of cost, which is the purchase price, and other amounts paid to transport or install the asset, and

the second element of cost, which is any capital expenditure incurred after that time, for example, the cost of improving the asset.

In AssetManager Pro, the first element of cost is entered using the Asset Information window. For information on creating a new asset see 'To add an asset' on page 50. The second element of cost is entered using the Asset Transaction window. 

To enter a second element of cost

1 Go to the Transactions command centre and click Asset Transactions. The Asset Transaction
window appears.
2 Click the search icon in the Asset ID to select the asset you want.

The second element of cost takes effect, for the purpose of all calculations, from:

* the acquisition date if it is incurred in the year of acquisition, or

* the first day of the year if it is incurred at any time in a subsequent year. The Date field defaults to the respective date.

3 Select Second Element of Cost for Pooled Asset or Second Element of Cost from the Type drop-down list. The book and tax details of the asset for this transaction type are displayed.

 
Acquisition Cost - The original cost of purchasing and preparing the asset for use.
Open Written Down Value - The depreciated value of the asset for book purposes. It represents the difference between the acquisition cost of the asset and the depreciation calculated to date. 
Second Element Cost YTD - The value of other second element costs added in the year to date. This will not be visible for pooled assets. The value of the field is visible only after you save the transaction.
Second Element Cost - The value of the second element cost being added to the asset in this transaction. This will always be the tax exclusive value. 
New Cost of Asset - The sum of the Acquisition Cost and all second element costs.
New Open Written Down Value - The sum of the Open Written Down Value and the Second Element Cost added in this transaction. 
Balance of Pool - The current balance of the pool to which the asset belongs. 
Opening Adjustable Value - The Acquisition Cost reduced by the car limit, if applicable, less the depreciation deducted to date.Acquisition Cost The original cost of purchasing and preparing the asset for use.
Second Element Cost - The value of the second element cost being added to the asset in Second Element Cost
YTD - The value of other second element costs added to the value of the asset in the year to date. This will not be visible for pooled assets. The value of the field is visible only after you save the transaction.this transaction. This will always be the tax exclusive value.
Private Use Adjustment - The amount that the Second Element Cost is reduced by due to the
Depreciation on SEC - The depreciation applicable to the second element cost.private use percentage applied to the asset.
Closing Balance of Pool - The Balance of pool amount plus the net value of the second
New Cost of Asset - The sum of the Acquisition Cost and all second element costs.element cost.
New Opening Adjustable Value - The sum of the Opening Adjustable Value and the second element cost added in this transaction. 

4 Enter any additional information to help you identify the specific purpose of the transaction in the Note field.

5 Enter the new capital expenditure in the Second Element of Cost field.

6 Click Journals if you want to preview the journal entries that will be posted to the asset or pool. The Transaction Journal window appears.

7 Click OK to confirm the change in the private use percentage.