Vertical lift modules are an automated storage and retrieval system that is frequently utilized in warehouses and distribution centers. Frequently, these devices are referred to as vertical life systems or VLS for short.
When it comes to utilizing the benefits of vertical lift modules in California warehouses and distribution centers are making the most of the advantageous technology. The VLM is designed to improve storage capacity and improve efficiency in retrieving and storing inventory items. These systems typically are made of tall vertical columns that have shelves or trays that will be moved up or down by a lift mechanism. These can offer a huge reduction in individual labor needs as the module can do most of the heavy lifting.
When it comes to accounting for this type of business expense, the VLM ought to be considered a capital expenditure. This would thereby be recorded on the balance sheets as an asset, with the cost of purchasing and installing the VLM initially capitalized. The value would then be depreciated over the device’s useful life. As the device depreciates over time the change in value would need to be logged on an income statement and would impact the net income and overall financial performance of your company, thereby helping you to regain the cost of investment in the device. Ongoing maintenance costs and any further improvements or upgrades to the system would also be logged and accounted for to ensure business expenses are accurately reported.
For support with your business or warehouse expenses, including how to account for the purchase of vertical lift modules in California, contact the accounting offices of McMurray Stern at Mcmurraystern.com.
