FreeBalance Accountability Suite
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Overview
Depreciation is a method of reducing the value of assets being used over a certain period of time. This reduction of value is commonly due to usage, passage of time, wear and tear, technological outdating, depletion or absolution of the asset. All organizations have to include deprecation calculations and costs in their financial statements and processes. The method of doing these exercises varies depending on the type of depreciation and the asset being depreciated. The Depreciation Method screen's purpose is to provide standardized and user defined methods that will be the basis for performing fixed assets depreciation and postings. All these methods are cataloged by unique identification codes that will be available for authorized users to search.
Navigation
Assets ► Support Entities ► Depreciation Method
Depreciation Methods Screen Fields
Field | Description |
Id | Unique identification code, manually entered by users or automatically generated based on parameters |
Active | If selected, the depreciation method will be available for use. |
Rates Required | Used only for Customized Rated Depreciation Method. Represents a user defined depreciation rate to be applied to the Asset Class and could be inherited to a specific Asset Item. |
Predefined Method Type | A selection of depreciation methods to choose from. Available options are: Straight Line, Declining Balance, Activity Based, Sum of the Years Digits, Customized Rates. |
Language | Country specific language used for description. |
Abbreviation | Short Description for the Depreciation Method. |
Description | Description for the Depreciation Method. |