Exact Financials (v3)

Fixed Assets Manual - Creating depreciation formulas

Creating depreciation formulas

Each asset can be depreciated by several depreciation methods. Each method is based on either a depreciation formula or a depreciation table. A depreciation table allows you to depreciate manually. See Creating depreciation tables. In Exact Fixed Assets C/S you can create and maintain these formulas yourself. Exact Fixed Assets C/S also has a standard formula you can use or change. Create depreciation formulas in: [Master data, Maintenance, General, Depreciation formulas].

You can use several fields and functions to build a formula. Exact Fixed Assets C/S provides the following fields:

• Amount_depr_adjustment (The amount of depreciation adjustment)

  In the periods when revaluation [Management, Revalue assets] took place, the amount of depreciation adjustment is calculated and recorded.

• Basic_amount

  The basic amount of the asset used to compute depreciation. This amount is always registered in the currency of the asset book linked to the asset. For journalizing this always needs to be the default currency of your company. The basic amount is, in principal, the purchasing value, possibly corrected by the revaluations.

• Calendar-periods

  The number of periods in a calendar.

• Current period

  The current period.

• Current_quantity

  The current quantity of an asset. This applies to serial assets (always 1)or piece assets (self-defined).

• Depreciated_so_far

  The cumulative amount of depreciation until the last depreciation.

• Depreciated_when_entered

  The amount which was already depreciated when the fixed asset was entered in the fixed asset accounting system.

• Estimated_life_periods

  The number of periods of the estimated life, based on the linked calendar on the estimated life in years.

• Estimated_life_years

  The number of years of the estimated life.

• Financial_years_first_depr

  The financial year the asset is depreciated for the first time.

• Financial_years_last_depr

  The year the asset is depreciated for the last time. This is usually the current financial year.

• Insured_value

  The value according to the appraisal of the insurance company.

• Percentage_per_year

  The percentage that can be determined per year in the index table for manual percentages. See Creating index tables.

• Period_first_depr

  The period when the depreciation starts within the linked calendar.

• Period_last_depr

  The period when the depreciation was done last, within the linked calendar.

• Periods_depreciated

  The number of periods in which depreciation already took place counted from the period and year of purchase.

• Purchase_price

  The value of purchase of the asset.

• Salvage_value

  The value of the asset after its estimated life.

• Subsidy

  Subsidy or other amounts received from the government.

• Units_of_production

  The total amount of production units the asset can achieve during its estimated life.

• z_admin

  The company number of the current company.

• z_today

  Today's date

• z_user

  The current user.

Exact Assets C/S includes the following functions:

• Absolute value
  
  
• Difference between dates
  
  
• Logical expressions
  
  
• Logarithms
  
  
• Integer
  
  
• Maximum
  
  
• Minimum
  
  
• Etc.

You can also add, subtract, multiply or divide by using the standard signs (+,-,/,*). You can use all fields and functions, to create your own depreciation formula.

• The result of the formula you are creating is always the "Depreciation costs per period".

Example

Depreciation costs per period :(Basic amount - Salvage value) /

Estimated life in periods.

The purchase is reduced with the salvage value, divided through the total number of periods of the complete estimated life of an asset. If the purchase were EUR 100,000,-, the salvage value EUR 10,000,- and the estimated life four years of 12 periods (48 periods), EUR 1875,- ((100,000-10,000)/48) is depreciated. The amounts are always in the currency of the asset book linked to the asset. For journal entries this needs to be the default currency of the company.

Finance Manual C/S > Contents > Working with fixed assets > Creating depreciation formulas