Define Depreciation Rates

OBJECTIVE

The Define Depreciation Rates function is used to define depreciation rates that will be used to calculate depreciation (for example, linear – 10 years or declining – 15%).

 

Steps

maestro* > Accounting > Financial Management > Depreciation > Define Depreciation Rates

 

Create a rate

1. Enter the required information in the Main Fields tab:

The Configuration icon is used to define entry options for the Code field. Fields followed by the * character are mandatory fields.

Field	Description
Code*	Code that identifies the rate.
Description*	Description of the rate.
Method	Used to determine the rate calculation method. Available values: Linear Fixed rate calculated on the amount to be depreciated (for example, an asset worth $100,000 depreciated over five years). Declining Rate calculated on the remaining value to be depreciated (for example, 30% on $100,000 the first year, 30% on $70,000 the 2nd year, etc.). Hourly Used to depreciate equipment based on the number of hours the equipment has been used. The system uses the production hours for the selected period. The number of hours is multiplied by the equipment value and divided by the life expectancy of the equipment in hours. NOTE: For the Hourly method to work, the project must have been created using the same code as the depreciation code to create a link between the two.
Maximum (%)	Maximums depreciable percentage for the asset. NOTE: To keep a residual value, enter a number lower than 100.
Rate (%)	Rate at which the asset is depreciated. NOTE: This field can only be used with the Declining and Hourly methods.
Years	Number of years during which the asset is depreciated. NOTE: This field can only be used with the Linear method.

2. Click Save.

 

See also

• Depreciation Book

 

Last modification: November 12, 2024