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.