Manual Depreciation Method 
Use this depreciation method for one-off depreciations.
With this depreciation method, you do not need to specify any calculation methods. Instead, you enter the depreciation amount directly when you create the manual depreciation documents. For more information, see Manual Depreciation.
Note
You cannot assign depreciation types with the manual depreciation method to any asset or asset class.
SAP Business One lets you use these depreciation types only when you create manual depreciations.
Manual Depreciation Method
To let manual depreciation affect the calculation of an asset's planned depreciation, select this checkbox. After you select the checkbox, the system automatically reduces the depreciation base by the manual depreciation amount. The reduction of the depreciation base only applies to the fiscal year during which the manual depreciation takes place. For more information, see the examples below.
The reduction applies to an asset only when the asset uses the acquisition and production costs as the base for the planned depreciation calculation. If the asset uses the net book value as the base, the manual depreciation amount is deducted anyway. In addition, the reduction only takes places in the fiscal year during which the manual depreciation occurs. For more information, see the examples below. End of the note. |
From the dropdown list, select a pool to which you want to assign the depreciation type. You must assign a special or manual depreciation type to a pool. |
Example
Asset X
Acquisition and Production Costs: 60,000 USD
Useful Life: 60 Months
Depreciation Method: Straight Line
Calculation Base: Yearly
Calculation Method: Acquisition Value/Total Useful Life
Capitalization Date: January 1st, 2010
On January 1st, 2011, you created a manual depreciation for the asset with a worth of 2,000 USD.
The system calculates the depreciation differently, depending on the settings of the manual depreciation type.
Reduce Depreciation Base checkbox: Selected
2010
60000 USD / 60 * 12 = 12000 USD
2011
In January, the asset was manually depreciated by 2,000 USD. In this case, the depreciation base (the acquisition and production costs) of this year is reduced by 2,000 USD as follows:
60000 USD – 2000 USD = 58000 USD
Therefore, the standard depreciation in this year is calculated as follows:
58000 USD / 60 * 12 = 11600 USD
2012
As the manual depreciation amount only affects the depreciation base in 2011, the depreciation in 2012 is still calculated as follows:
60000 USD / 60 * 12 = 12000 USD
2013
60000 USD / 60 * 12 = 12000 USD
2014
The system calculates the book value of the asset as follows:
60000 USD – 12000 USD * 3 – 2000 USD – 11600 USD = 10400 USD
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2010
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2011
2966.67
966.67
966.67
966.67
966.67
966.67
966.67
966.67
966.67
966.67
966.67
966.63
2012
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2013
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2014
866.67
866.67
866.67
866.67
866.67
866.67
866.67
866.67
866.67
866.67
866.67
866.63
Reduce Depreciation Base checkbox: Unselected
2010
60000 USD / 60 * 12 = 12000 USD
2011
The system still calculates the standard depreciation in this year as follows:
60000 USD / 60 * 12 = 12000 USD
In addition, in January, the asset was manually depreciated by 2,000 USD.
2012
60000 USD / 60 * 12 = 12000 USD
2013
60000 USD / 60 * 12 = 12000 USD
2014
The system calculates the book value of the asset as follows:
60000 USD – 12000 USD * 4 – 2000 USD = 10000 USD
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2010
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2011
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2012
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2013
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
2014
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.37