Use this tab to define the general parameters for depreciation types.
To access this tab, from the SAP Business One Main Menu, choose
and select the General tab.Specify the minimum book value of an asset after depreciation. Note If you have specified a minimum depreciated value and a salvage value percentage at the same time, the salvage value has higher priority. That is, the system depreciates an asset till the asset value is reduced to the salvage value. End of the note. |
Note The field is available only for depreciation types having the Straight Line or Declining Balance method. End of the note. Enter the maximum depreciable value of an asset. The system takes the maximum depreciable value into account when calculating the depreciation charges for an asset. For more information, see the examples below. Example
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Rounds the net book values of assets at the end of each fiscal year. Once you select the checkbox, SAP Business One rounds the depreciation amounts of the fiscal year so that the year end book values of the assets are rounded. Example The net book value of an asset calculated by the system amounts to 28,123.32 USD at the end of the year. If you have selected the checkbox, the system rounds this amount to 28,123.00 USD. The depreciation amount of the asset in the year is therefore increased by 0.32 USD. End of the example. |
Enter a salvage value percentage. Note If you have specified a minimum depreciated value and a salvage value percentage at the same time, the salvage value has higher priority. That is, the system depreciates an asset till the asset value is reduced to the salvage value. End of the note. |
Includes the salvage value in the calculation of an asset's depreciation. Example Asset X Acquisition and Production Costs: 6,000 USD Useful Life: 60 Months Depreciation Method: Straight Line Calculation Base: Yearly Calculation Method: Acquisition Value / Total Useful Life Salvage Value Percentage: 10%
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Specify how the acquisition of an asset determines the asset's depreciation start date. From the dropdown list, select one of the following conventions:
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Specify how an asset's subsequent acquisition affects the asset's depreciation. From the dropdown list, select one of the following conventions:
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Specify how an asset's retirement affects the asset's depreciation. From the dropdown list, select one of the following conventions:
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Moves depreciation of previous periods in the fiscal year to the capitalization period. In Italy, for instance, in the year of asset capitalization, it is legally required to calculate the asset depreciation for the entire year and the deprecation start date cannot be earlier than the capitalization date. If the capitalization of an asset does not take place at the beginning of a year, you can calculate the depreciation for the entire year and then select the checkbox to move the depreciation of the previous periods to the capitalization period. Example Asset X Acquisition and Production Costs: 10,000 USD Useful Life: 60 Months Depreciation Method: Straight Line Calculation Method: Acquisition Value / Total Useful Life Capitalization Date: April 1st, 2012 It is required to deduct the depreciation in the first year by 50%. The system first calculates the depreciation in the first year as follows: (10000 USD / 60 * 12) * 50% = 1000 USD Then, the depreciation per month is calculated as follows: 1000 USD / 12 = 83.33 USD
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Stops an asset's depreciation at the end of the last full fiscal year of the asset's useful life. Example Asset X Acquisition and Production Costs: 3,600 USD Useful Life: 36 Months Depreciation Method: Straight Line Calculation Base: Monthly Calculation Method: Acquisition Value / Total Useful Life Capitalization Date: April 1st, 2010
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Enter the amount (in percentage) of depreciation you want to reverse for an asset in the retirement year. After you specify the percentage, the system decreases the asset's planned depreciation in the retirement year, and adjusts its net book value accordingly. Note The percentage you specify here applies to an asset only when it is fully retired. End of the note. Example Asset X Acquisition and Production Costs: 48,000 USD Useful Life: 48 Months Depreciation Method: Straight Line Calculation Method: Acquisition Value / Total Useful Life Percentage of Depreciation to Reverse in Retirement Year: 40% Capitalization Date: January 1st, 2010 Retirement Date: July 1st, 2012 The system calculates the asset depreciation as follows:
Then, the system calculates the depreciation to reverse in 2012 as follows: 1000 USD * 6 * 40% = 2400 USD And the deprecation in 2012 is updated as follows: (6000 USD – 2400 USD) / 6 = 600 USD
The net book value of the asset on July 1st, 2012 is 20,400 USD. End of the example. |
Specify the valid period of the depreciation type. |