Depreciation Table Methods

Form ID: (FA202600)

The depreciation method determines how the asset cost is allocated over the useful life. MYOB Acumatica provides multiple predefined depreciation methods, but you can also create the required custom depreciation methods. On this form, you can add, delete, or edit the table-based depreciation methods—that is, the depreciation methods that provide the percentages for each year of the asset's useful life in a table.

With table-based depreciation methods, the system does not take into consideration the acquisition date of the asset. The depreciation amounts within the year are calculated based on the period of the asset acquisition.

Form Toolbar

The form toolbar includes only standard buttons. For the list of standard buttons, see Form Toolbar and More Menu.

Summary Area

In this area, you can enter information for a new depreciation method, or view or edit the information for an existing one.

Element Description
Depreciation Method ID The identifier of the depreciation method.
Record Type The object type for which you can specify the current depreciation method. The following options are available:
  • Class: A class methods is used to join separate methods of asset type into one method that can be assigned to a fixed asset class. The quantity of aggregated methods of asset type equals the number of conversion periods in a financial year that you specify for the class method.

    You can select this depreciation method while you are creating a fixed asset class on the Fixed Asset Classes (FA201000) form.

  • Asset: An asset method is a part of a class method that specifies the asset depreciation in the selected conversion period of a financial year. The class of the asset is specified in the Class Method box, which is required if you select this option.
  • Both: A class method of this type is used if assets of this type must be depreciated once a year. Thus, this method contains the parameters of the method (similar to a class method) and the depreciation (similar to an asset method).

    You can select this depreciation method while you are creating a fixed asset class on the Fixed Asset Classes form.
Class Method The method used to group the methods of the asset type. This box is available and required for the Asset record type only.
Useful Life, Years

The period of time (in calendar years) the asset is supposed to be in use.

If Asset is selected in the Record Type box, this box becomes read-only and is populated with the useful life of the method selected in the Class Method box. You cannot enter this setting manually.
Recovery Period The useful life in months—that is, the useful life (in years) multiplied by 12.
Description A brief description of the depreciation method.
Averaging Convention The convention that determines how fixed assets will be depreciated for the period within which the asset was acquired or disposed. You should select an averaging convention depending on the depreciation method you specified. The following options, described more fully in Averaging Conventions, are available: Full Period, Mid Period, Next Period, Modified Half Period, Modified Half Period 2, Full Quarter, Mid Quarter, Full Year, Mid Year, and Full Day.
Convention Period The period number in the financial year to which the averaging convention method is applied.
Total Percent

Read-only. The percent of depreciation by years, which is the sum of the values specified in the Percent per Year column of the table on this form. The value of this box should be less than or equal to 100%.

If the total percent is more than 100, the system displays an error message and the method cannot be saved.
Source The source of the method which can be predefined or custom. The predefined methods are included in MYOB Acumatica and cannot be modified or deleted. The custom methods have been configured in your MYOB Acumatica instance and can modified as needed.

Table

You use the table to specify the depreciation percent of the depreciable basis for recovery years of the selected method of asset type; depreciation calculations for every recovery period may differ.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Column Description
Recovery Year The year of the useful life within which the asset is depreciated.
Percent per Year The depreciation percent of the depreciable basis that must be allocated over the specified recovery year. The sum of the values entered in this column is displayed in the Total Percent box of the Summary area, which must be less than or equal to 100.