Once a depreciation method is in use, it cannot be modified. Therefore, any modification to existing rates within a method will require a new depreciation method to be defined.
Navigate to the Depreciation Methods window.
Navigation: Setup: Depreciation > Methods
Enter a depreciation Method name and Description.
Select Calculated from the Method Type poplist.
The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods).
Choose whether the depreciation method allows asset depreciation in the year it is retired.
Choose the Exclude Salvage Value check box if the method is to exclude the salvage value from the depreciable basis.
Enter the number of Years and Months of asset life.
Save your work.
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Table from the Method Type poplist.
Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.
Choose whether this depreciation method allows asset depreciate in the year it is retired.
Choose the Exclude Salvage Value check box if the method is to exclude the salvage value from the depreciable basis.
Choose whether this method is a straight-line method.
Enter the number of Years and Months of asset life.
Enter the number of Prorate Periods Per Year the method uses.
Choose the Rates button to enter rates in the Depreciation Rates window.
Enter annual depreciation rates.
Rates entered must fully depreciate an asset over its life. When specifying a calculation basis rule of Cost, the sum of all the years' rates for each period must be one. When specifying a calculation basis rule of NBV, the rate for the last year of life for each period must be one and all the other rates must be between zero and one.
Attention: For table methods, the annual rate entered for each prorated period must reflect the fraction of the fiscal year the asset was in service. The rate must be prorated based on the number of periods in the year and on the prorate convention.
Save your work.
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Production from the Method Type poplist.
The calculation basis automatically defaults to Cost (NBV is not valid for units of production methods).
Choose the Exclude Salvage Value check box if the method is to exclude the salvage value from the depreciable basis.
Save your work.
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Flat from the Method Type poplist.
Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.
Choose whether this depreciation method allows asset depreciation in the year it is retired.
In the Depreciable Basis Rule field, select a depreciable basis rule from the poplist.
Choose the Exclude Salvage Value check box if the method is to exclude the salvage value from the depreciable basis. Salvage value can only be excluded if the flat-rate method uses NBV as the calculation basis.
Check the Polish Adjustment Calculation Basis check box, if applicable. This check box affects the calculation when creating negative cost adjustments to assets depreciating under Polish tax depreciation. See: Adjusting Polish Tax Depreciation Transactions.
Note: This check box is available only if you have selected one of the Polish tax depreciable basis rules as your depreciable basis rule.
Choose the Rates button to enter rates in the Depreciation Rates window.
Enter basic rates.
Enter the adjusting rate, or loading factor.
Save your work.
Note: If using the Japan Tax Reforms features, when navigating to the Depreciation Methods window, the Use Japan NBV Calculation for Impairments check box will be available. Select this check box if the Japan NBV Calculation for Impairments formula is to be used with this depreciation method.
For seeded JP-STL Depreciation Methods, an additional rate line was added to the Depreciation rates as a result of changes to the Japan Tax Reforms and the Use Japan NBV Calculation for Impairments has been enabled. For more information, see Japan Tax Reforms features.