Enter Depreciation Method

Explanation

Use this activity to enter information on a depreciation method.

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.

System Effects

As a result of this activity, the depreciation method can be used in the books tab for an object.

Window

Depreciation Method

Related Window Descriptions

Depreciation Method

Procedure

Use the following procedure to enter information on a depreciation method:

1. Open Depreciation Method window.
2. Use the New function and enter the identity and the description for the depreciation method. Specify the Method Type field.
3. Enter a value for the Base Value Type field.
4. Select a value from the Starting Principle list.
5. Select a value from the Add Investment Starting Principle list.
6. Select a value from the Change Base Value list.
7. Select a disposal principle using the Disposal Principle list.  By default Period Disposal will be selected. You can change the default value by selecting either Half Year or End of Year.
8. Select the General Method check box if the method is used by more than one object.
9. If the Method Type is Straight Line select Depreciation Rate Type as Divided by Life or Fixed Factor 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. Method length is determined by estimated life or alternative estimated life from the books tab in object or by specified length in years and months or in periods. If the depreciation rate type is Fixed Factor, the method length can also be Based on Factor.
10. If the Method Type is Declining select Depreciation Rate Type Divided by Life or Fixed Factor 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. Method length is determined by estimated life or alternative estimated life from the books tab in object or by specified length in years and months or in periods. The Based on Factor option can be selected only if the depreciation rate type is Fixed Factor.
11. If the Method Type is RemValue/RemLife select the Depreciation Rate Type is set to Divided by Life and it is not possible to enter any values in Factor. Set the options for the method length. Method length is determined by estimated life or alternative estimated life from the books tab in object or by specified length in years and months or in periods.
12. If the Method Type is RemValue/RemDays, and the Depreciation Rate Type is set to "Divided by Life" and it is not possible to enter any values in Factor. Set the options for the Method Length. Method Length is determined by estimated life or alternative estimated life from the books tab in object or by specified length in years and months or in periods.
13. If the Method Type is Customized, no values could be entered in Depreciation Rate Type, Factor or the Method Length section. Additional information is added in Specified Depreciation Factor.
14. Select the Below Depreciable Basis check box if you want to allow depreciation for objects to be calculated even after the limit for the depreciable basis is reached.
15. Save.