Visma.net ERP
Depreciation methods (FA202500)
This topic gives you information about the elements that you find in this window in Visma.net ERP, such as fields, field values, buttons, and check boxes.
The depreciation method determines how the asset cost is allocated over the asset useful life.
Visma.net ERP provides multiple built-in depreciation methods, and you can also configure
custom depreciation methods.
In this window, you can create, delete, and edit the
formula-based depreciation method or the depreciation methods that use
formulas to calculate the depreciation during the entire useful life of an
asset.
The top part
In this area, you can enter information for a new depreciation method, or view or edit the information for an existing one.
| Element | Description |
|---|---|
| Depreciation method ID | The identifier of the depreciation method. |
| Calculation method |
The calculation method used by the selected depreciation method. The following options are available:
|
| Description | A brief description of the depreciation method. |
| Declining balance multiplier |
The percentage of depreciation acceleration used by the Declining balance calculation method for calculating the depreciation rate, which, in turn, is required for calculating the depreciation expense per a year. Usually, the percent of depreciation acceleration is considered as 125%, 150%, 175%, or 200%.The maximum
value that can be entered in this field is
99,999.0000. |
| Switch to straight line | A check box that you select to direct the system to switch from the Declining balance calculation method to the Straight line method, when the depreciation amount calculated by using the Straight line method is greater than the depreciation amount calculated for the Declining balance method. |
| Percent per year | The percent of fixed asset depreciation for one year for the Dutch method 2 calculation method with the Yearly accountancy check box selected. |
| Source |
The source of the selected depreciation method. The following
options are available:
|
| Averaging convention |
The way fixed assets will be depreciated for the period within
which the asset was acquired or disposed. The following options, described more fully in About averaging conventions, are available: Full period, Mid period, Next period, Modified half period, Modified half period 2, Full quarter, Mid quarter, Full year, Mid year, and Full day. |
| Annual accounting |
A check box that you select to direct the system to calculate the depreciation amount on
a yearly basis. Then the system spreads this depreciation amount over the financial periods in a year (for example, months) by dividing this amount by the number of periods. With this check box deselected, the system calculates the deprecation amount for each period (not the whole year) by using the formula specific for the selected calculation method. |
