Depreciation Rate Management

OBJECTIVE

The Depreciation Rate Management option is used to define depreciation rates that will be used to calculate depreciation (for example, linear over 10 years or declining of 15%).

Steps

maestro* > Accounting > Financial Management > Depreciation > Depreciation Rate Management (Web)

Creating a Rate

Click the New icon.
Enter the required information in the Main Fields tab:

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% of $100,000 the first year, 30% of $70,000 the second year, etc.).

Hourly

Used to depreciate equipment based on the number of hours it 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 (%)*

Maximum depreciable percentage of 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.

Number of Years

Number of years during which the asset is depreciated.

NOTE: This field can only be used with the Linear method.

Click the Save icon.

Depreciation Rate Management

OBJECTIVE

Steps

Creating a Rate

See also