Depreciation methods are used to define the rules for calculating depreciation. The calculations for the depreciation methods correspond with current Russian Federation legislation and with international standards.

Click Fixed assets> Setup> Depreciation methodto open the Depreciation methodform.

Press CTRL+N to create a new depreciation method.

In the Depreciation methodfield, enter the depreciation method for the fixed asset.

In the Namefield, enter a description for the depreciation method.

In the Methodfield, select the depreciation method from the following options:

Linear This is a uniform accrual method. A capital allowance is calculated proportionately for each time period or interval that you set up, such as monthly, quarterly, semiannually, annually, or for the entire service life of the asset.

Reducing remainder This method decreases the depreciation value over the service life of the asset. The depreciation amount is based on the residual value of the fixed asset at the beginning of the reporting year and the depreciation rate calculated based on the remaining useful life and the acceleration factor.

Manual The depreciation schedule is defined as a percentage value for each period.

Factor The depreciation amount is calculated as a remaining amount, multiplied by a fixed ratio.

By number of years The value is based on the number of years of useful life remaining.

Product output/mileage A depreciation method in which the asset value is proportionate to the volume of units produced.

Tax nonlinear The accrued monthly depreciation for the asset is defined as the product of its remaining value and the depreciation rate. The depreciation rate is defined as: K= (2 / n) * 100%, where n = the useful life of the asset in months.

Tax nonlinear group The accrued monthly depreciation for the asset group is defined as the product of its remaining value and the depreciation rate. The depreciation rate is defined as: K = (2 / n) * 100%, where n = the useful life of the asset group in months.


In the Intervalfield, select the period for which the depreciation must be accrued.
Note If you select Quarterlyin the Intervalfield, you must enter three monthly transactions, instead of a single transaction for the entire quarter.

In the Factorfield, enter the factor or percentage to be reduced, by interval.
Note The Factorfield is available only if you select Reducing remainderor Factoras the depreciating methods.

Click the Generaltab.

In the Cost limitfield for the Tax nonlinearmethod, enter the cutoff percentage value.
Note When the accrued depreciation amount is calculated, the depreciation amount for the year will be recalculated based on the service life and the depreciation profile for the asset. The amount is allocated across the specified periods in the year.

Click Manual schedulesto manually create fixed asset depreciation schedules.
Note The Manual schedulesfield is available only if you select Manualas the depreciation method.

Press CTRL+S or close the form.