Fixed Asset Depreciation

Depreciation is a periodic transaction reduces the value of the fixed asset.

The depreciation of fixed assets is based on the remaining service life of the asset. The depreciation amount is generally the same in each depreciation period.

The depreciation of a fixed asset is based on the total service life of the asset. This is usually the same depreciation amount in each depreciation period.

The difference in the straight line service life remaining and straight-line service life is when there is an adjustment posted to the asset.

The depreciation of a fixed asset is depreciated by the same percentage in each depreciation period.

The depreciation of a fixed asset is determined by the percentage that you enter for each interval in the calendar year. The intervals that you set up percentages for are posted according to the value that you select in the Period frequency:

Yearly

Monthly

Quarterly

Half-Yearly

Daily

After you select the period frequency, a manual schedule must be set up to set percentages for each posting interval. Manual depreciation is always calculated as a percentage of the acquisition price.

Factors are the percentages that are used to depreciate assets. Once the factor has been selected you can set up progressive, digressive, or straight-line depreciation:

• Progressive: Amount of depreciation increases each depreciation period.
• Digressive: Amount of depreciation per period decreases over time.
• Straight line: Depreciation is the same in each period.

The depreciation of a fixed asset is based on their usage. You don’t have to set up percentages and intervals. After you create a depreciation profile that uses the Consumption method, you can set up the method in various ways.

The depreciation of a fixed asset is calculated based on the service life of the asset. For example, if an asset has a service life of ten years, the percentage is calculated as 20 percent (200% ÷ 10).

This method is also known as double declining balance.

The depreciation of a fixed asset is depreciated by the same percentage in each depreciation period. For example, if an asset has a service life of five years, the percentage is calculated as 17.5 percent (175% ÷ 10).

The depreciation of a fixed asset is calculated based on the service life of the asset. For example, if an asset has a service life of ten years, the percentage is calculated as 15 percent (150% ÷ 10).

The depreciation of a fixed asset is calculated based on the service life of the asset. For example, if an asset has a service life of ten years, the percentage is calculated as 12.5 percent (125% ÷ 10).