Depreciation methods
- Straight Line
- Reducing Balance
- Straight Line
- Usage
- Sum of Digits (rule of 78)
- MACRS
- ACRS
- Reducing Balance switching to Straight Line
- Double Declining Balance switching to Straight Line
Straight Line and Reducing Balance are the most common depreciation methods in use. The co-existence of corporate and taxation depreciation calculations is required.
Different base values are used for depreciation, such as acquisition value, 50% of acquisition value, replacement value, and 50% of replacement value.
How Infor meets this requirement
SyteLine provides these standard depreciation methods, shown with abbreviations used in the application:
- sl = straight line
- SYD = sum-of-the-years'-digits
- usage = production or use method
- 125DB = 125% declining balance
- 150DB = 150% declining balance
- 175DB = 175% declining balance
- 200DB = double declining balance
You can also create unlimited user-defined depreciation methods, such as Sum of Digits, MACRS, or ACRS in the Fixed Asset Depreciation Tables form.
The coexistence of corporate and taxation depreciation calculations is supported. The application supports 4 depreciation schedules but only one BOOK goes to Ledger. The others are only for reporting purposes If the acquisition cost or bonus amount is changed for an asset after some depreciation expense has been posted (accumulated depreciation > 0), then we recommend that you delete and re-enter the asset with the changed cost, bonus amount, and accumulated depreciation. Otherwise, the future calculated depreciation deduction amounts will be incorrect. This only pertains to assets using the declining balance method with periodic frequency.
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