Enter Depreciation Method
Explanation
Use this activity to enter information on a depreciation method.
If the Method Type is:
- Straight Line select Divided by Life or Fixed Factor as Depreciation
Rate Type and enter a percentage value in Factor
and enter a value in the Non Depreciable Base Value field. Set the
options for the method length. If the depreciation rate type is Fixed Factor,
the method length can also be Based on Factor.
- Declining select Divided by Life or Fixed Factor as Depreciation
Rate Type and enter a percentage value in Factor
and enter a value in the Non Depreciable Base Value field. Select
a value for the Switch to Method Type field in order to specify
the depreciation method to switch to when needed. If Straight Line
is selected as the method type to switch to, specify the factor to be used
in the Switch to Factor field. Set the options for the Method
Length. The Based on Factor option can be selected only
if the depreciation rate type is Fixed Factor.
- RemValue/RemLife select Divided by Life as
Depreciation Rate Type and it is not possible to enter any values
in Factor. Set the options for the Method Length.
- RemValue/RemDays select Depreciation Rate Type "Divided
by Life" and it is not possible to enter any values in Factor.
Set the options for the Method Length.
- Customized, no values could be entered in Depreciation Rate
Type, Factor or the Method Length
fields. Additional information is added in Specified Depreciation
Factor.
Method length is determined by estimated life or alternative estimated life
from the books tab in Fixed Asset object or by specified length in years and
months or in periods. Enable Below Depreciable Basis if you want to allow
depreciation for objects to be calculated even after the limit for the depreciable
basis is reached. Enable General Method if the method is used by more
than one object
Prerequisites
Before information for a depreciation method can be entered, the following
must have been completed:
- The company must exist in IFS Financials.
- FA Accounting must be used as Code Part Function for a code part. This
is defined in Define Code String page.
System Effects
As a result of this activity, the depreciation method can be used in the
books tab for an object.