The purpose of derived value models is to simplify the posting of fixed asset value model transactions that are planned for regular intervals.

You choose one value model, usually the one used for accounting depreciation, as the primary value model and attach to it other value models that are set up to post transactions in the same intervals as the primary value model. Tax depreciation value models are often set up as derived value models.

The most common transactions to set up to post to derived value models are acquisitions, acquisition adjustments, and disposals.

Example

Assume that value model B and value model C are set up as derived value models for value model A for the Acquisition transaction type. In value model A, enter an acquisition transaction for asset 123 for 1,500.00. When posted, an acquisition transaction is generated and posted in asset 123 for value model B and in asset 123 for value model C for 1,500.00.

When you prepare the transactions of the primary value model for posting in the fixed asset journal, you also can view and modify the transactions of the derived value models. If you prepare the primary value model transactions in another journal, the transactions of the derived value are not visible, but are posted to the appropriate accounts and posting layers when you post the primary value model transactions.