User Guide
Depreciation Methods
Several depreciation methods are included in the application by default however, you may also create your own. This section outlines the default methods included and the steps for creating your depreciation methods.
The default Depreciation Methods include:
Straight Line Methods
Straight Line and Straight Line (for Pro-rated Periods)
Annualized IRS Tax Methods
200DB, 200DB Half, 150DB, and MACRS
IRS Tax Methods to spread Annualized Tax Amounts over the active Fiscal Periods in a Year
150DB Fis and MACRS Fis
Methods for IRS Bonus Tax Depreciation
Codes starting with “Bonus”
Capital Cost Allowance Methods for Canada, Annualized Tax Amount spread over the active Fiscal Periods in a Year
Codes starting with “CCA”
Diminishing Balance Depreciation (a.k.a. “Reducing Balance” or “Declining Balance”) methods, calculated annualized but spread over,
Fiscal Periods, codes starting with “Dim Bal” and ending with “Fis”, or Calendar Year Periods, codes starting with “Dim Bal” and ending with “Cal”
Sum of Years Digits, spread Annualized values over the active Fiscal Periods in a Year
SYD Fis
Full single-year Depreciation spread over
Fiscal Periods, Full Fis, or Calendar Year Periods, Full Cal.
To add a new Depreciation Method, please follow these steps:
Navigate to Fixed Assets > Depreciation Methods> click on New Depreciation Method
A new depreciation method will be created by the system once all the following fields are populated and saved.
Period Begin: The standard value is “1” (i.e., this will be the first depreciation)
Formula: Create a formula using the operators and symbols (e.g., (NB-RV)/(ALCP+1) is for Straight Line)
Code: Name of the method
Description: A description of the method that should be instructive for anyone reviewing or auditing the method
