When you set up a fixed asset depreciation profile and select in the field in the form, the depreciation of fixed assets that are assigned to this depreciation profile is determined by the percentage that you enter for each interval in the calendar year.
The intervals that you set up with percentages are posted according to the selection that you make in the field on the tab of the form. The posting intervals that you can select are:
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When you select the posting interval, click and set up percentages for each of the posting intervals.
The manual schedules and the posting intervals together define the depreciation amount, as shown in the examples below. Manual depreciation always is calculated as a percentage of the acquisition price.
In manual depreciation, the percentages that you enter in the intervals of the depreciation do not have to total 100 percent. It is a flexible depreciation method that is often used to define an extraordinary depreciation profile in the form, such as a non-periodic depreciation for special (perhaps tax) purposes.
Note
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(ITA) If the configuration key for Italy is selected, assets must be depreciated on a monthly basis and fully depreciated using the depreciation method. |
Examples
Acquisition price: 11,000; Expected scrap value: 1,000
The intervals and percentages that you set up in the form:
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Interval 1 |
10% |
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Interval 2 |
50% |
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Interval 3 |
8% |
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Interval 4 |
12% |
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Interval 5 |
20% |
Calculation of the depreciation by interval:
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Calculation of yearly depreciation amount |
Net book value at the end of the interval |
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Interval 1 |
(11,000 - 1,000) * 10% = 1,000 |
10,000 (11,000 - 1,000) |
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Interval 2 |
(11,000 - 1,000) * 50% = 5,000 |
5,000 (10,000 - 5,000) |
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Interval 3 |
(11,000 - 1,000) * 8% = 800 |
4,200 (5,000 - 800) |
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And so forth |
If you select in the field, you have set up 12 manual schedule intervals. The depreciation amounts could be:
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January |
(11,000 - 1,000) * 10% = 1,000 |
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February |
(11,000 - 1,000) * 50% = 5,000 |
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and so forth |
If you select , you have set up two manual schedule intervals. The depreciation amounts could be:
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June 30 |
(11,000 - 1,000) * 10% = 1,000 |
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December 31 |
(11,000 - 1,000) * 50% = 5,000 |
The total of percentages for all intervals does not have to be 100. An informational message appears if the value in the field is not 100.
