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Object documentationDepreciation Types - Setup Window Locate this document in the navigation structure

 

Use this window to create, display, or change depreciation types.

To access the general area, from the SAP Business One Main Menu, choose   Administration   Setup   Financials   Fixed Assets   Depreciation Types  .

General Area Fields
Code

Enter a unique code for the depreciation type.
Description

Enter a description about the depreciation type.
Method

From the dropdown list, select one of the following depreciation methods:

  • No Depreciation

  • Straight Line – A method of distributing an asset's value evenly across its useful life. That is, the asset is depreciated by the same amount in each period.

  • Straight-Line Period Control – A method that entails defining different factors used in depreciation calculation for different periods of an asset's useful life.

  • Declining Balance – A method that entails applying a depreciation rate against the non-depreciated balance of an asset.

    Instead of spreading the cost of the asset evenly over its useful life, the method depreciates the asset at a constant rate, which results in declining depreciation charges each successive period.

  • Multilevel – A method of applying different depreciation rates to an asset for different stages of an asset's useful life.

  • Immediate Write-Off – A method generally applied to low-value assets whose full value can be depreciated in the acquisition year.

  • Special Depreciation – A method of carrying out automatic special depreciation.

  • Manual Depreciation – A method of carrying out manual special depreciation.
Calculation Base

Specify whether you want to calculate the depreciation of assets with one of the following bases:

  • Yearly – Calculates the depreciation of the year first, and then uses the yearly depreciation as the base to calculate the depreciation of each period.

  • Monthly – Calculates the depreciation of the month first, and then uses the monthly depreciation as the base to calculate the depreciation of each period.

When you use the two different kinds of calculation bases, the rounding of depreciation values can be different.

Note Note

For depreciation types with the Declining Balance method, the percentage you define can be annual or monthly, according to your selection here.

End of the note.

Example Example

Asset X

Acquisition and Production Costs: 5500 USD

Useful Life: 48 Months

Depreciation Method: Straight Line

Calculation Method: Acquisition Value / Total Useful Life

  • If the asset has the yearly calculation base, the system calculates the depreciation of the year as follows:

    5500 USD / 48 * 12 = 1375 USD

  • If the asset has the monthly calculation base, the system first calculates the depreciation of the month as follows:

    5500 USD / 48 = 114.5833 USD

    Then, the system rounds 114.5833 to 114.58 and calculates the depreciation of the year as follows:

    114.58 USD * 12 = 1374.96 USD

End of the example.

More Information

Depreciation Types - Setup Window: General Tab

Depreciation Types - Setup Window: Calculation Tab