Declining Multi-Phase Depreciation 

Use

By specifying the rate of depreciation and the validity period, you can determine a course of depreciation that changes in levels over time (usually decreasing). The validity period can be based, among other things, either on the capitalization date or on the depreciation start date. The change between the levels of depreciation does not have to take place at the start or end of a fiscal year. You can also change to another rate of depreciation during the fiscal year.

Calculation :

Depreciation = Acquisition value * percentage rate of the level

APC: 1000

useful life: 50

Percentage rate year 1-8: 5.00%

Percentage rate year 9-14: 2,50%

Percentage rate year 15-50: 1.25%

 

Depreciation level 1 = 1000 * 5.00% = 50

Depreciation level 2 = 1000 * 2.50% = 25

Depreciation level 3 = 1000 * 1.25% = 12.5

When you define the depreciation levels in the system, you have to enter the period of validity for the individual depreciation levels as cumulative values (see Multi-Level Depreciation).