Depreciation settings

In this box you configure depreciation settings for Scheduled and Calculated depreciation. These settings apply to the marked fixed assets group.

Depreciation period

For scheduled depreciation you here enter the depreciation period in years. The depreciation period can be entered using two decimals.

For calculated depreciation, this field is not available.

Depreciation percent

Depreciation percent per year for scheduled depreciation is automatically calculated. You can also enter the annual depreciation in percent and then the depreciation period will be calculated. The percentage can be entered using two decimals.

For calculated depreciation you enter depreciation percent for the depreciation according to plan (the annual).

Depreciation method

In this column you select if depreciating should be done or not for the fixed assets linked to the fixed assets group.

The option Depreciation according to plan is selected by default for scheduled depreciation and can be selected for calculated depreciation.

The option No depreciation is default for calculated depreciation. This setting will make the other settings for depreciation percent/basis and posting, unavailable.

If you change from No depreciation to a depreciation method for an existing group, then the fixed assets which are linked to the group and have zero (0,00) as depreciation period will be updated and get the depreciation percent (and depreciation period for scheduled) you entered for the group when you save.

Depreciation basis

By clicking the button Depreciation basis you access additional settings for calculated depreciation.

For calculated depreciation you can select a depreciation basis among the following:

• Acquisition value – The cost of acquiring the fixed assets (it is the purchase cost incl. handling costs for example freight/transport and customs duty).
• Replacement cost – The cost to replace or again acquire the fixed asset on the accounting date.
• Alternative value – This is any optional alternative value on the fixed asset. You can use alternative value if you use a work flow where you use another value than the acquisition value or the replacement cost as basis for calculating the calculated depreciation.

For calculated depreciation it is possible to enter the Depreciation share in percent. The percentage can be entered using two decimals. The depreciation share refers to how large a share of the depreciation basis which can be depreciated, normally and default this is 100.00 percent.

Depreciation basis and depreciation share apply for fixed assets where depreciating is in progress and for assets fully depreciated.