Configure formula-based depreciation methods

Configure the straight line depreciation method

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Straight line.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
Optional: In the Averaging convention field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of.
The following options 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.
Optional: Select the Annual accounting check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
Click .

Configure the declining balance depreciation method

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Declining balance.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
In the DB multiplier field, enter the value (that is, the percentage of depreciation acceleration that you have decided to use in this method).
For details, see the description of the Declining balance calculation method available the Depreciation methods (FA202500) window.
Optional: Select the Switch to SL check box to configure the system to switch the calculation method to Straight line in order to depreciate an asset to zero or to its salvage value (if specified).
Optional: In the Averaging convention field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of.
The following options are available: Full period, Mid year, Mid quarter, and Full day.
Optional: Select the Annual accounting check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
Click .

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Sum of the years' digits.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
Optional: In the Averaging convention field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of.
The following options are available: Full period and Full day.
Select the Annual accounting check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
Click .

Configure the remaining value depreciation method

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Remaining value.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
Optional: In the Averaging convention field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of. The following options 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.
Optional: Select the Annual accounting check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
Click .

Configure the Dutch method 1

The formula used by the system to calculate the depreciation expenses by this depreciation method is described in Depreciation methods.

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Dutch method 1.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
Leave the Annual accounting check box cleared.
Click .

Configure the Dutch method 2

The formula used by the system to calculate the depreciation expenses by this depreciation method is described the Depreciation methods (FA202500).

Go to the Depreciation methods (FA202500) window.
In the Depreciation method ID field, type the name of the new method.
In the Calculation method field, select Dutch method 2.
Optional: In the Description field, enter a useful description of the depreciation method that you are configuring.
It will allow you to easily find this method in the list of available depreciation methods.
In the Percent per year field, specify the value (in percent) that defines which part of the asset net book value should be depreciated for one year.
Leave the Annual accounting check box cleared.
Click .