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:
- Open Depreciation
Method window.
- Use the New function and enter the identity and the description for the
depreciation method. Specify the Method Type field.
- Enter a value for the Base Value Type field.
- Select a value from the Starting Principle list.
- Select a value from the Add Investment Starting
Principle list.
- Select a value from the Change Base Value list.
- 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.
- Select the General Method check box if the method is used by more
than one object.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Save.