Set up consumption depreciation

Click General ledger> Setup> Fixed assets> Consumption> .
Createa consumption unit, such as kilometer (km), kilogram (kg), or hour.

A consumption unit can be used as a reference for unit price entry for fixed assets and in the calculation of Consumption depreciationproposals in the Fixed assetsjournal.
Click General ledger> Setup> Fixed assets> Consumption> .
Createa consumption factor.
In the right-hand pane, set up an End datefor each depreciation period.
Determine whether to set up the consumption factor as a Percentageor Quantity, and enter appropriate values in one field or the other.

If you enter a Percentage, the quantity estimated for the fixed asset in the Estimated consumptionfield on the fixed asset value model ( Value models ) is multiplied by the percentage set up for the period determined by the End date, and this multiplied quantity is suggested as the depreciation quantity for the period.
If you enter a Quantity, the quantity set up for the period determined by the End dateis suggested as the depreciation quantity in the Consumption depreciationproposals.

Click General ledger> Fixed assets, select the fixed asset for which you are setting up consumption depreciation, and then click Value modelsor Depreciation books
On the Depreciationtab of the relevant value model, select appropriate values in the Consumption factorand Unitfields.

Note
If the fixed asset does not yet have a value model or depreciation book attached to it, you must select an appropriate value model or depreciation book or set up an appropriate value model or depreciation book and then select it for the fixed asset.

Enter values in the Unit depreciationand Estimated consumptionfields. These fields are used when you run Consumption depreciationproposals in journals.

See Also