In IFS10, when the depreciation type of fixed asset depreciation method is set to "RemValue/RemMonths", depreciation factor cannot be entered. What is the reason for this restriction?
However, customers want to be able to input depreciation factors and participate in the calculation of depreciation of fixed assets, rather than manually calculate and input the salvage value of fixed assets each time.
FA depreciation method
Userlevel 6
+11
Hi
When using the RemValue/RemMonths application does not allow you to change the depreciation factor since it is automatically calculated using the Value and the Life Period.
However, if your requirement is to calculate the Salvage Value automatically based on a percentage, you can use the Non Depreciable Base Value field for this purpose. When you enter a value for this depreciation will be done until it reaches to the certain amount expressed in a percentage of the Object Base or acquisition value. But the disadvantage of this option is will not be consider the Salvage amount when calculating the base amount for depreciation as same as when you entered the Salvage Amount in Object level.
Hope this will help.
Regards,
Akila
Thanks for your reply and suggestion.
As you said, I need to subtract the Salvage amount when calculating the base amount for depreciation. So using the Non Depreciable Base Value field is not appropriate.
Regards,
What is the depreciation base value in your setup? Acquisition value? Perhaps you should use Modified Acquisition Value option instead - I think it is excluding salvage value from the depreciation basis.
Userlevel 6
+11
Hi
You can use a customer event to trigger at Object Activation point to update the Salvage value automatically based on a logic define in the Object Group level custom field. In this way Salvage amount will be automatically calculated and depreciation will be based on the deducted Base or Acquisition value.
Hope this will help.
Regards,
Akila
Hi,
Thank you for your reply.
The depreciation base value I set is the acquisition value, but I don't think it has anything to do with that.
Requirement is that when purchasing a new fixed asset or add investmet to the fixed asset, there is no need to manually calculate and enter the salvage value of the fixed asset. a salvage percentage is entered ahead of time, which automatically calculates the salvage value and deducts it from the depreciation base value when calculating depreciation.
HI,
Thank you for your advice.
This may be a solution, but events such as additional investment need to be considered as well, not just at activation point.
Hi,
Thank you for your reply.
The depreciation base value I set is the acquisition value, but I don't think it has anything to do with that.
Requirement is that when purchasing a new fixed asset or add investmet to the fixed asset, there is no need to manually calculate and enter the salvage value of the fixed asset. a salvage percentage is entered ahead of time, which automatically calculates the salvage value and deducts it from the depreciation base value when calculating depreciation.
OK, that can be perhaps solved by custom event, as @AkilaR suggested.
I’d like just to point-out nuance in depreciation calculation. Imagine asset with acquisition value 10000, estimated life 10 years and salvage value 10% = 1000.
If you are using acquisition value as depreciable basis and remaining value/remaining life depreciation method, system is calculating yearly depreciation as acq value/est life: 10000/10 = 1000, and stops depreciation when net value reaches salvage, so in fact your asset is depreciated for 9 years only…
If you are using modified acquisition value as depreciable basis and remaining value/remaining life depreciation method, salvage value is deducted from depreciable basis: system is calculating yearly depreciation as (acq value-salvage)/est life: (10000-1000)/10 = 900, and stops depreciation when net value reaches salvage, after full 10 years…
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