Exact Financials

Fixed Assets Manual - Changing depreciation methods

Changing depreciation methods

Over time you may want to select another depreciation method for an asset set. This could be due to a change in fiscal requirements. All assets within the asset set will be depreciated according to the new depreciation method. Depreciation methods can be changed in: [Assets: Depreciation, Change depreciation methods].

You can change the depreciation method of an asset by linking another depreciation formula to the asset book in which an asset set is belongs to. Of course the new depreciation formula should already exist. See [Creating depreciation formulas].

If you change your depreciation method, you will need to:

• leave the old depreciation method as it is and continue depreciating according to the new method,
• recalculate depreciation according to the new method (including conventions) and,
• if you make a depreciation adjustment,
  • depreciate the difference in cumulative depreciated amount as an extra depreciation in the last period during which you depreciated according to the old method.
  • depreciate the difference between the old and new method in the last period of an asset's life.