Depreciation

Requirement

It is a common requirement that Fixed Assets are reduced in value 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 business in different countries can use different depreciation methods and rules to calculate a periodic depreciation charge. A Fixed Asset can have an economic life between one and fifty years

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	Fixed Asset Depreciation Type. Open
FAS055	Fixed Asset Depreciation Plan. Open
FAS075	Fixed Asset Type. Open
FAS920	Fixed Asset. Extraordinary Depreciation