Question

Depreciation of additional investments

  • 25 April 2024
  • 1 reply
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Sometimes it happens to my customer that they receive invoices they would like to include in the acquisition value (and depreciation base) after they have activated and depreciated an object for a period of time. They normally process those additional invoices as “additional investments”. The problem we have is that subsequent depreciation is not taking into account that the remaining life time is shorter. This leads to a lump sum depreciation an the end of life. My customer would like to depreciate the original acquisition value + additional value - accumulated depreciation evenly over the remaing life time.

Any help highly appreciated.

Example:

Acquisition value: 12000

Life: 1 year

Additional investment after two months of depreciation: 6000

 


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Userlevel 4
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IN IFS there are several pre-defined depreciation methods, I would assume you can find one that is named REM AP, Rem Value Rem Life, Assigned Period with the method type RemValue/RemDays. 

If there is no such depreciation method in your installation of IFS APPS then you can make one. The method type RemValue/RemDays is what you need to select to get the depreciation you are looking for. For the starting principle I would select Beginning of period. For depreciation Rate Type I would select Divided by life.

/Jonas

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