Overview

Create a depreciation method.

General

View or modify a depreciation method.

Manual schedules

Open the FA depreciation profile schedulesform to create or update the asset depreciation schedules.

Note
This button is activated only if you select Manualin the Methodfield.

Depreciation method

Enter the depreciation method to be used.

Name

Enter the name of the depreciation method.

Method

Select the depreciation method from the following options:

• Linear- This is a uniform accrual method.

• Reducing remainder- This method decreases the depreciation value over the service life of the asset.

• 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 depreciation amount 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.

• Tax nonlinear group- The accrued monthly depreciation for the asset group is defined as the product of its remaining value and the depreciation rate.

Interval

Select the depreciation calculation interval from the following options:

• Yearly

• Half-Yearly

• Quarterly

• Monthly

Factor

If you select the non-linear method or the reducing balance method, enter the depreciation calculation ratio.

Monthly

Select this check box to create depreciation transactions for each month.

Depreciation calculation

Select the depreciation calculation basis from the following options:

• At the replacement cost- Depreciation is calculated based on the replacement cost of the fixed asset.

• At net book value- Depreciation is calculated based on the net book value of the fixed asset.

Note
This field is available only if you select Linearin the Methodfield.

Cost limit

Enter the cost interval as a percentage.

Note
This field is available only if you select Tax nonlinearin the Methodfield.