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Function documentation Declining-Balance Method Locate the document in its SAP Library structure

Use

Diminishing-rate depreciation includes both the declining-balance method, as well as the sum-of-the-years-digits method (see Depreciation Calculation Methods).

Features

The normal declining-balance method of depreciation multiplies the straight-line percentage rate resulting from the useful life by a given factor. Since a relatively short useful life can produce a very large depreciation percentage rate, you can specify a maximum percentage rate as the upper ceiling limit in the declining-balance method. A similar principle applies for a very long useful life. Entering a minimum percentage rate prevents the percentage rate from sinking below a given level.

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