Depreciation methods are ways used for calculating the depreciation amounts of assets proportionate to the actual physical wear and tear of the assets over a period of time and usage. Exact Globe supports various common types of depreciation methods. Prior to calculating the depreciation amounts of an asset, a depreciation method must be defined at Assets ➔ Assets ➔ Depreciation methods, by clicking New.
Assets ➔ Assets ➔ Depreciation methods
Depreciation method
Type a unique code for the depreciation method. You can type up to 20 alphanumeric characters.
Note: The depreciation method code cannot be edited once you click Save.
Description
Type the description for the depreciation method. You can type up to 50 alphanumeric characters.
Note: The description can be modified at any time by clicking Open.
Click this to insert description in multiple languages.
Type
Select the relevant depreciation type. The following are the types of depreciation methods supported by Exact Globe:
Note: Depending on what you select under Type, different tabs will be displayed. The following will explain the various tabs and fields based on your selection at Type.
If you select Linear depreciation, Linear (until residual value), Accelerated depreciation, or Manually: Degressive (fixed percentage of book value) under Type, you will see the following tabs: General and Depreciation table
Periods
Type the number of periods for the depreciation method. By default, “1” is displayed.
Note: The number of periods you typed here will be reflected in the Depreciation table tab. For example, if you typed “10” at Periods under the General tab, then you will see 10 rows reflecting 10 periods under the Depreciation table tab.
Percentage
This field cannot be edited. By default, it will show “100.000000” if “1” is typed at Periods. It will auto-calculate the percentages for you depending on what you type under Periods.
Note: This field is enabled only if you select the Manually: Degressive (fixed percentage of book value) type.
Periods column
This column displays the number of periods in a table for the depreciation method. By default, 1 period is displayed.
% - Year [number] column
This column displays the percentage of depreciation for each period. By default, “100.000000” is displayed.
Note: If you click on the Periods or %- Year cells, you will see the following message: “If you implement changes, the depreciation method will become manual. Continue?” If you click Yes, the original type at Type will change to type Manually and you will be able to enter percentages manually. Otherwise, click No to cancel.
Add period
Click this to add another row for period to the depreciation table. You may click this button repeatedly to add more periods and years to the depreciation table.
Note: When adding periods or years to this table, the percentage of the depreciation is automatically calculated for each period. Any periods added here will also change the entries at Periods and Percentage under the General tab. If you want to remove a period, you need to type in the appropriate number at Periods under the General tab. When you do that, the entry at Percentage will reflect the change.
Total
This displays the total percentage of depreciation.
If you select Degressive to linear under Type, you will see the following tab: General.
Entry
Select Year or Period to set the depreciation of the asset respectively.
Years
This field cannot be edited. By default, it is 1 year.
This field cannot be edited. By default, it is 12 periods.
Type the percentage of degressive depreciation for the asset. By default, “100.000000” is pre-filled as the percentage.
Linear percentage
Type the percentage of linear depreciation for the asset. By default, “100.000000” is pre-filled as the percentage.
If you select Degressive (fixed percentage of book value) under Type, you will see the following tab: General.
Select Period or Year to set the depreciation respectively.
Degr. Perc.
Type the percentage of degressive depreciation. By default, it is pre-filled with “1.000000”.
If you select Variable write-off under Type, you will see the following tab: General.
General tab
Depreciation percentage section
Activation
Type the percentage of depreciation for the year at the moment of asset activation. By default before activation the percentage of depreciation is zero.
Disposal
Type the percentage of depreciation for the year at the disposal of the asset. By default, this is pre-filled with “100.000000”.
If you select Fixed amount under Type, you will see the following tab: General.
Amount
Type the fixed amount of depreciation.
If you select Sum of the year digits (fixed decreasing amount) under Type, you will see the following tabs: General and Depreciation table.
Note: When adding periods or years to this table, the percentage of the depreciation is automatically calculated for each period. Any periods added here will also change the entry at Periods under the General tab. If you want to remove a period, you need to type in the appropriate number at Periods under the General tab.
If you select Normal annuity method under Type, you will see the following tab: General.
Interest
Type the interest of depreciation. By default, “100.000000” is displayed.
If you select Manually under Type, you will see the following tabs: General and Depreciation table.
Select Percentage or Amount to be used for manual entry at the Depreciation table.
Depreciation according to period-date calendar
Select this check box to set the depreciation for the asset according to the start date to the last active period of the period-date calendar. Clear this check box to set the depreciation according to the depreciation table.
Depending on the option selected at Type under the General tab, type the percentage or amount of depreciation for each period.
Click this to add another row for period to the depreciation table. You may click this button repeatedly to add more periods and years/amounts to the depreciation table.
Note: When adding periods or years/amounts to this table, the percentage of the depreciation or amount will need to be manually calculated for each period. Any periods added here will also change the entry at Periods under the General tab. If you want to remove a period, you need to type in the appropriate number at Periods under the General tab.
The total percentage or amount of depreciation will be displayed here. By default, “0” is displayed. The percentage/amount displayed here will be auto-calculated depending on what you type under the % - Year or
Amount – Year column.
If you select Usage/performance based under Type, you will see the following tabs: General and Depreciation table.
Total performance
Type the total performance for the depreciation.
Amount – Year [number] column
Type the depreciation amount for the year. This can be modified.
Add year
Click this button to add more years to the depreciation table.
Note: Any additional years added here will also change the entry at Periods under the General tab. If you want to remove a year, you need to type in the appropriate number at Periods under the General tab.
The total amount of depreciation will be displayed here. The percentage/amount displayed here will be auto-calculated depending on what you type under the Amount – Year column as well as the number of years.
Save
Click this to save the depreciation method.
New
Click this to create a new depreciation method.
Close
Click this to exit.