What is Japanese Straight Line Depreciation

The Japanese depreciation method is specific to Japanese accounting requirements. In effect, there are two final values used in the depreciation calculation. The first is the final value as per the other available depreciation methods. This is referred to as the calculation final value. Once the asset value reaches this final value, another procedure for calculating depreciation takes over, and depreciation is calculated until the asset reaches the second final value, known as the posting final value.

When using the Japanese depreciation method, it is important to note the following:

• If an end period depreciation is entered rather than a depreciation percentage, then it must relate to the period in which Final Value is reached. In other words, the period in which normal depreciation ends.
• Transactions with an asset indicator of Value are irrelevant to this depreciation method, and therefore should not be used.
• This depreciation method ignores the Exclude Final Value from Calculation selection in Ledger Setup (LES).
• This depreciation method does not work in conjunction with the depreciation from a given day facility.