This information describes posting transactions using derived depreciation books.

• When you post transactions for a value model that contains derived depreciation books, the derived depreciation book transactions are posted automatically from journals, purchase orders, or free text invoicing. If you prepare the primary value model transactions in the Fixed assetsjournal, however, you can view and modify the amounts of the derived transactions before posting them.

• Acquisitionis often used as the transaction type for the derived depreciation book. You use this when the value model and the derived depreciation book should be applied to the fixed asset from the time of acquisition of the fixed asset.

• Other values for the transaction type also can apply. For example, if the value model and the derived depreciation book have the same intervals regarding sale or disposal, all fixed asset transaction types are available for the setup of a derived depreciation book.

Example

Delivery vans are depreciated by two depreciation methods. For accounting purposes, Straight line service life, depreciation is used, and for tax purposes, Reducing balanceis used.

Suppose that the acquisition price for the value model and the depreciation book is 100,000. Refer to the following information to see how to set up depreciation methods using derived depreciation books.

1. Create the value model and depreciation book in Value models.

   • The value model for accounting: VM 1, Posting layer Current, Straight line life remainingdepreciation.

   • The depreciation book for tax purposes: VM 2, Tax, Reducing balancedepreciation.

2. On VM 1, click the E-mail processingtab, and select VM 2 in the Value modelfield, and Acquisitionin the Transaction typefield.

The value model and depreciation book then can be attached to specific fixed assets. When an acquisition is posted for a fixed asset with value model VM 1, the acquisition is posted not only on VM 1, but also on the derived depreciation book VM 2.

The fixed asset can then be depreciated in the value model and the depreciation book.