When you use the factor depreciation method, the fixed asset depreciation amount is calculated as a remaining amount, multiplied by a fixed ratio.
Select the period for depreciation accrual in the Intervalfield, in the Depreciation methodform.
If you select the reducing balance or non-linear depreciation methods, specify the increasing factor. If you select the factor depreciation method, specify the amount of the multiplier.
For the non-linear method, enter the cutoff percentage value in the Factorfield (for example, 20). When the accrued depreciation amount is calculated, the depreciation amount for the year will be recalculated based on the service life and depreciation profile for the asset. The depreciation is distributed equally across the intervals in the year.
For more information, see "Factor depreciation" in the Applications and Business Processes Help.