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If your entity periodically performs reassessment of the fixed asset values for impairement impairment or for gain, you can use the Changes of Fixed Asset Parameters document to register the results of reassessment. Here, you can enter the revised Gross Cost, Salvage Value, and Useful Life. The system will calculate the amount to be depreciated and the remaining months for depreciation. Once this document is posted, the new parameters will be used for the next depreciation calculation.

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The depreciation calculation stops once the fixed asset's Net Book Value becomes equal to Salvage Value.

You can use the Statement of Depreciation report to view the detail on depreciation of specific or all fixed assets.

Using the Units of Production Depreciation method

According to the Units of Production depreciation method, depreciation expenses are calculated proportionally to usage of the fixed asset which has a limited resource initially specified as Estimated Production ValueVolume. Generally, this method is used when usage differs significantly from month to month.

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• Depreciable Cost = Gross Cost - Salvage Value
• UOM (unit of measure) in which usage will be measured
• Estimated Production ValueVolume which sets up the maximum usage recommended for the fixed asset
• Salvage Value which is the planned residual cost of the asset after usage

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Month Usage * (Depreciable Cost/Estimated Production ValueVolume)

The Accumulated Depreciation amount is a sum of depreciation amounts calculated based on month usages in all previous months.

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