Create Template for Double Declining Depreciation of Fixed Assets

This document explains how to create the double declining method, a variance of the declining balance, for depreciation of fixed assets.

Outcome

Default values for double declining depreciation are defined, such as the factor (coefficient) used for calculation, and the date from which depreciation is to start.

Connect the template to a depreciation type for declining balance in ‘FA Type. Connect Depreciation Types’ (FAS077/E).

Parameter file (CSYTAB) is updated.

Before you start

Parameters to Set

Program ID/Panel Field The field indicates …
(FAS026/B) Economic life

…the lifetime of the asset; that is, the number of years that the asset is to be depreciated.

Valid values are 01–99.

(FAS026/B) From date …the date from which the double declining method is to be applied.
(FAS026/E) Coefficient for declining method

…the factor (coefficient) used for the calculation.

The formula is:

(1/Number of years) x Coefficient

Example: 5 years depreciation and coefficient 2: (1/5) x 2 = 0.4 (40%).

Follow These Steps

  1. Start ‘Depreciation Template. Open for Declining Depreciation’ (FAS025/B).

  2. Enter a three-position coefficient ID. Click ‘New.’

  3. On the E panel, fill in description (required) and name.

  4. Fill in the economic lifetime in years (required) and the start date from which the data entered becomes valid. Press Enter.

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