Custom Depreciation Codes - Calculation Method Tab

Access this tab using Maintain>Fixed Assets>Custom Depreciation Codes.

Use this tab to assign a calculation method to the depreciation code entered on the Custom Codes tab. You can select from a Method of Fixed Amount (FA), Percentage of Depreciable Base (PD), Percentage of Net Book Value (PN), Percentage Table of Depreciable Base (TD), or Percentage Table of Net Book Value (TN). Then, depending on the calculation method selected, enter a Fixed Amount, Fixed Percentage, or use the Percentage Table.

Method Options: Select a calculation method, and then either enter a fixed amount or percentage.

• Method: Listed below are the available calculations methods and their descriptions.
  • Fixed Amount (FA) - Select this method to depreciate by an annual monetary amount.
  • Percentage of Depreciable Base (PD) - Select this method to depreciate using a fixed percentage of the depreciable base (Cost minus Salvage value). This percentage is an annual amount.
  • Percentage of Net Book Value (PN) - Select this method to depreciate using a fixed percentage of the Net Book Value (Cost minus Accumulated Depreciation). This amount is an annual amount.
  • Percentage Table of Depreciable Base (TD) - Select this method to depreciate using variable percentages for each year of the depreciation. This calculation is based on the depreciable base (Cost minus Salvage). This amount is an annual amount.
  • Percentage Table of Net Book Value (TN) - Select this method to depreciate using variable percentages for each year of the depreciation. This calculation is based on the Net Book Value (Cost minus Accumulated Depreciation). This amount is an annual amount.
• Fixed Amount: Enter the amount to depreciate on a yearly basis. The calculation is based on the frequency (monthly, quarterly, or yearly) that was set up by the Administrator for the organization (Organization>Set Up Modules>Fixed Assets). You are required to enter an amount here if Fixed Amount was selected as the calculation method.
• Fixed Percentage: Enter the percentage to depreciate on a yearly basis. The calculation is based on the frequency (monthly, quarterly, or yearly) the Administrator set up for your organization (Organization>Set Up Modules>Fixed Assets). You are required to enter a percentage here if you selected Percentage of Depreciable Base or Percentage of Net Book Value as the calculation method.

When entering percentages in the system, do not include a decimal point. For fractional percentages, you must enter the leading zeroes. For example, enter the following numbers to indicate the percentages:

• 0005 = .5%
• 005, 05, or 5 = 5%
• 50 = 50%

Percentage: Enter a percentage in the Percentage column, if you select Percentage Table of Depreciable Base or Percentage Table of Net Book Value as the calculation method.

Year: The system displays the number of years (1, 2, 3,) into the depreciation-not the calendar year (2001); this number cannot be changed. This value stays with the depreciation method and can be used by more than one asset.

Percentage: Enter the percentage to be depreciated for the designated year. Calculating depreciation divides the percentage by the frequency.

Note: Enter any comments you want to make about this year. Information entered here appears on the Reports>Fixed Assets>Custom Depreciation Codes report.