Configure Extraordinary Depreciation for Fixed Assets

This document explains how extraordinary depreciation, defined per depreciation type, should be carried out. Extraordinary depreciation can be done regardless of whether the normal depreciation for that period has been done or not.

Outcome

A subsequent depreciation method and value types are defined for each depreciation type, and connected to a depreciation method.

The depreciation plan is adjusted depending on which method is chosen for further write-offs.

The values are automatically applied when running an extraordinary depreciation in (FAS140).

File (FFDTED) is updated.

Before you start

The starting conditions in Configuring Depreciation of Fixed Assets must be met.
Depreciation types with basic values must be defined in ‘FA Depreciation Type. Open’ (FAS050).
Value types must be defined in ‘FA Value Type. Open’ (FAS060).

Parameters to Set


Program ID/Panel	Field	The field indicates …
(FAS920/B)	Depreciation type	…an ID for the depreciation method.
(FAS920/E)	Method after extraordinary depreciation	…how the depreciation will continue when an extraordinary depreciation has been made. The valid alternatives are: 1 = Depreciation continues the same as before. This means that the fixed asset will be fully depreciated faster. 2 = The depreciation will continue as long as planned, but with a lower amount each year. The extraordinary depreciation is stored in a specific value type.
(FAS920/E)	Value type – extraordinary depreciation	…the value of the extraordinary depreciation. Note that this value type is used for method 2. If depreciation method 1 is used, the value type is retrieved from the asset’s depreciation type.

Follow These Steps

Start ‘Settings – Extraordinary Depreciation’ (FAS920).
Fill in the depreciation type ID. Click New.
On the E panel, select the method to use after extraordinary depreciation.
If depreciation method 2 is selected, fill in value type for extraordinary depreciation. Press Enter.