When you set up a fixed asset depreciation profile and select in the field in the form, the fixed assets that are assigned to this depreciation profile is based on the usage of the fixed assets.

You do not need to set up percentages and intervals in the form. After you have created the consumption method profile, you can set up the method in a variety of ways.

To use consumption depreciation

  1. Create the depreciation profile in the form.

    For consumption calculations, the depreciation profile must include an ID, a name, and a depreciation method type.

  2. Set up consumption factors in the form.

    Each consumption factor must be set up with an ID, a name, and a consumption factor, which can be either or .

  3. Set up consumption units in the form.

    Set up consumption units with an ID and a name. Depreciation units are used as references for entering a unit prices for fixed assets. They also are used to calculate consumption depreciation in the form. Examples of units are a kilometer (km), a kilogram (kg), or an hour.

  4. Set up individual fixed assets in the form and add value models and depreciation books with depreciation profiles to each fixed asset.

    You must set up the value model or depreciation book for consumption depreciation for the fixed asset with a depreciation profile based on the consumption method on the tab of the form, or the form in the group. You can use the same value model for many fixed assets.

    Depreciation profiles are part of the value model or depreciation book that you select for each fixed asset. You cannot add or modify profiles directly in the form. You can modify the depreciation profiles directly in the form.

    In the value model or depreciation book, enter information in the following fields for the field group:

    • .

    The field shows the consumption depreciation, in units, which has already been posted for the fixed asset/value model or fixed asset depreciation book. The field cannot be updated manually.


Example 1

The following consumption factor is set up for January 31:

Quantity of 1,000 and unit depreciation price (set up for the fixed asset) is 1.5.

Depreciation proposal on January 31 is:

* :

1,000 * 1.5 = 1,500

If the factor set up for the fixed asset is a percentage factor, the quantity estimated for the value model of the fixed asset in the field is multiplied by the percentage that is set up for the selected ending date, and this quantity is suggested as the depreciation quantity for the period.

Example 2

The following factor for consumption depreciation is set up for January 31: Percentage is 10 percent, unit depreciation price of the fixed asset is 1.5, and estimated quantity of the fixed asset is 2,000.

The depreciation proposal on January 31 is:

Estimate quantity * * : 2,000 * 10 percent * 1.5 = 300.

See Also