To calculate depreciation

LN uses formulas when it calculates depreciation amounts for assets or its related books. Formulas are part of the depreciation methods assigned to an asset and its related books. These are the formulas used by depreciation methods in LN:

All depreciation formulas vary based on the calculation mode you set for each type of book in LN. If the calculation mode is periodic, LN considers each period to have the same number of days. If the calculation mode is daily, LN uses the exact number of days in each period.

Note: LN calculates depreciation for each period in your company's calendar, regardless of the calculation mode. For example, if the calendar has twelve periods, LN calculates depreciation twelve times a year, regardless of whether the calculation mode is daily or periodic.

LN uses the frequency assigned to each of an asset's related books to determine how often to record the resulting transactions. For example, if the frequency is quarterly, LN groups the calculated amounts into quarterly amounts and records the results once a quarter. For more information on depreciation, see the topic, Depreciating Assets.