Depreciation
Requirement
As commonly required, the value of fixed assets is reduced over time to reflect the fact that the business is consuming their economic value. Depreciation is the accounting method used to reflect this reduction in value. Different businesses in different countries can use different depreciation methods and rules to calculate a periodic depreciation charge.
M3 solution
The M3 Fixed Asset module supports different depreciation methods and bases. These rules are then used to create asset-specific depreciation plans over the asset lifetime. Each fixed asset can be depreciated by different rules, for example, book or tax depreciation.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| FAS050 | FA Depreciation Type. Open | Connection with Fixed Asset Type. |
| FAS060 | FA Value Type. Open | Connection with Fixed Asset Type. |
| FAS070 | FA Location. Open | Connection with Fixed Asset Type. |
| FAS080 | FA Group. Open | Connection with Fixed Asset Type. |
| FAS075 | FA Type. Open | |
| CRS395 | Accounting Rule. Set | Configure for event FA10. |
| CRS405 | FAM Function. Open | Configure function FA10. |
| FAS920 | Settings - Extraordinary Depreciation | |
|
FAS040 FAS045 |
Column Template - Display FA. Open Column Template FA Value. Open |
Create templates to allow the display and reporting of assets. |
| FAS100 | FA Depreciation. Create Account Entries | Create a proposal, review and update it. |