Question

Depreciation of Fixed Asset on Usage

  • 4 February 2021
  • 2 replies
  • 229 views
D
Rank
Userlevel 6
Badge +10

Dear IFS Community.

 

I am interested to know if it is possible to Calculate Fixed Asset depreciation based on usage. I.e. if we have a fixed asset that is an engine worth 500,000 can we depreciate it based on the amount of hours it has run. 

For example its life is 5000 hours so for each 100 hours it runs can we depreciate the fixed asset, rather than to a calendar as the usage is not linear in line with dates,

 

Thanks, 

David. 

This topic has been closed for comments

2 replies

G
Rank
Userlevel 6
Badge +10

Hi

As far as I know, this can be done with a “Customized” Depreciation method.

 

 

The depreciation factors for each period can be defined - RMB - Specified Depreciation factors.

It may be required  adjust factor manually at each period to reflect the actual usage for the period.

Or do a customization to adjust it automatically according to usage.

 

Thanks

D
Rank
Userlevel 6
Badge +10

Thanks @GayanD I will take a look and let you know how it goes. I appreciate you taking the time to reply. Many thanks.

David.

 

Terms & ConditionsCookie settings