Depreciation Methods (tffam7510m000)
Use this session to maintain depreciation methods. LN supplies you with depreciation methods that define how an asset will depreciate over its life. You can use these methods when you set up categories. If the existing methods are not suitable, you can create your own methods. You can only modify the methods that you created. Once a method is in use by an asset, you cannot delete or modify the method.
For each custom method you create, you select an averaging convention. The averaging convention must be built into the depreciation percentage because it determines the recovery period for an asset. The recovery period determines the depreciation and associated tax deductions for which an asset is eligible in the first and last years of service. When you run depreciation for assets that use a method you created, LN uses the percentages in the method to calculate depreciation.
Field Information
- Depreciation Code
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The depreciation code is a unique code that is used to identify a depreciation method's attributes. You can define as many depreciation codes as needed.
- Description
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Description of the depreciation code.
- Depreciation Method