Issue
Examples depreciation formulas in Exact Financials C/S
Solution
In Exact Financials C/S you have an asset module which allows you to create your own deprecation formulas. This means that you are able to create your own depreciation methode. Not all calculations are possible but there is always the option to manually add the amount to be depreciated for each period. This can be done with a depreciation table.
The depreciation formulas are linked in maintenance asset set to an asset book. The asset book is linked to a calander which determines the amount of periodes each year. You can have more than one asset book for each asset set which makes is possible to view different depreciation methodes for an asset.
Here are some examples for the depreciation formulas you can use in Fixed Assets. In some of the descriptions there are examples to make it more clearly.
Declining balance 150%:
Example
The book value of an asset according to the declining balance method is calculated with the following components.
Cost of property: $ 50,000.--
Estimated useful life: 20 year
Salvage value: $ 5,000.—
Using the formula:
(1.5 / Estimated_life) * ( Basic_amount - Salvage_value - Depreciated_so_far)
( 1.50 / estimated_life_periods ) * (Basic_amount - Depreciated_when_entered - Salvage_value - Depreciated_so_far)
Degressive (dependend on an index)
( Basic_amount - Depreciated_when_entered - Depreciated_so_far) * (Percentage_per_year/100) / Estimated_life_periods
Straight line for Belgic
( Basic_amount - Salvage_value - Depreciated_so_far ) / (Estimated_life_periods - Periods_depreciated)
Straight line
The book value of an asset according to the straight line method is calculated with the following components.
Cost of property: $ 50,000.--
Estimated useful life: 6 year
Salvage value: $ 5,000.—
( Basic_amount - Depreciated_when_entered - Salvage_value) / Estimated_life_periods
A maximum amount of 100
IF( ( Basic_amount - Salvage_value) / Estimated_life_periods > 100,
100,
( Basic_amount -Salvage_value) / Estimated_life_periods )
Sum of the Year’s Digits
(( Estimated_life_periods - Periods_depreciated ) / (( Estimated_life_periods * (Estimated_life_periods + 1))/2)) * ( Basic_amount - Depreciated_when_entered - Salvage_value)