Depreciation and valuation methods

Depreciation and valuation methods are assigned to an asset book. They are used to calculate an asset's depreciation, insurance, and replacement value. Many standard depreciation calculations are available for out-of-the-box installation. For example, straight line, sum of years digits, various declining balance, and bonus methods. This is accomplished by running the asset company update depreciation calculation.

A custom depreciation calculation can also be created using the Method Formula. You can create an equation to calculate depreciation that is based on the asset's book value and related values. For example, number of periods, depreciation periods remaining, life to date depreciation, and salvage value.

Other methods can be set up to use a specified annual percent table or a unit of production table.