This appendix contains these topics:
The user defined depreciation methods for Japan (SV, Z1, Z2, W1, W2, T1 and T2,), exemplified in this appendix, with the exception of J1, are based on the following values:
| Method | Value |
|---|---|
| Financial Year | Start: January
End: December |
| Cost as of 01/01/97 | 1,000,000 |
| Salvage Value rate | 10 percent of Cost |
| Asset Life | 36 months (3 years) |
| Fixed depreciation rate | 33 percent |
| Depreciation start date | 01/01/97 |
| Depreciation calculated | Annually |
| Formula for final (3rd) year depreciation | Cost less YTD Accumulated Depreciation |
| Formula for Salvage Value | S01 = 10 percent of Cost |
| Formula for Basis | B01 = Cost less Salvage Value |
On User Defined Codes Revisions for Depreciation Method (12/DM), create depreciation code SV (Salvage Value).
Enter SV in the Code field.
Enter 1 in the Special Handling Code field.
Enter N in the Hard Coded field.
On Depreciation Rule Revision, create the depreciation method for salvage Value. Allow an additional 50 percent of the Salvage Value to be calculated beyond the asset life.
Enter SV in Depreciation Method field.
Enter 36 in Life (Periods) field.
Enter A in the Initial Term Apportionment field.
Enter C in the Compute Direction field.
Enter 01/01/96 and 01/31/99 in the Service Date From/Thru fields.
Enter 2 in the Allow Over Depreciation field.
Enter N in the Allow Negative Depreciation field.
On Depreciation Formula Revisions, create the following formulas:
| Formula | Formula ID | Description | Calculation |
|---|---|---|---|
| Basis | B01 | Basis = (Cost - Salvage) | Formula: 01 - 07 |
| Salvage amount | S01 | Salvage = 10 percent of Cost | Formula: 01 * 12
Multiplier: .1 |
| Depreciation calculation during asset life | A11 | 1st to Final Year | Formula: 10 / 03 * 49 |
| Depreciation calculation beyond asset life | A12 | 50 percent of Salvage | Formula: 07 * 12
Multiplier: .5 |
On Depreciation Rule Revisions, attach the formulas to Depreciation Method SV.
Enter 1 in the Life Year From field.
Enter 3 in the Life Year Thru field.
Enter A11 in the Depreciation field.
Enter B01 in the Basis field.
Enter S01 n the Salvage Value field.
To create an asset master record, access Master Information and complete the following fields:
Item Number
Description
Company
Responsible Business Unit
Asset Cost Business Unit/Object/Subsidiary
Date Acquired
Location/Start Date
Current Item Quantity
On Depreciation and Accounting Values, assign the user defined depreciation method SV to the asset.
Enter AA in the Book field.
Enter 01/01/97 in the Depreciation Start Date field.
Enter SV in the Depreciation Method field.
Enter 36 in the Life Months field.
Enter A in the Depreciation Information field.
Enter C in the Method of Computation field.
On Cost Summary, enter the cost of the asset.
Enter 1,000,000 in the Inception to Date field.
Run the Compute User Defined Depreciation program (P12855) as of the following dates:
| Date | Description Amount |
|---|---|
| 12/31/96 | 300,000 |
| 12/31/97 | 300,000 |
| 12/31/98 | 300,000 |
| 01/31/98 | 50,000 (50 percent of the Salvage Value) |
On User Defined Codes Revisions for Depreciation Method (12/DM), create depreciation code J1 (Double Declining Balance on Mid-Year Convention).
Enter J1 in the Code field.
Enter 1 in the Special Handling Code field.
Enter N in the Hard Coded field.
On Depreciation Rule Revisions, create depreciation method for Depreciation Method J1.
Enter J1 in Depreciation Method field.
Enter 60 in Life (Periods) field.
Enter Y in the Initial Term Apportionment field.
Enter I in the Compute Direction field.
Enter 01/01/96 in the Service Date From field.
Enter 01/01/96 in the Effective From field.
Enter N in the Allow Negative Depreciation field.
On Depreciation Formula Revisions, create the following formulas:
| Formula | Formula ID | Description | Calculation |
|---|---|---|---|
| 1st year depreciation | C01 | 1st year 20 percent of cost | Formula: ( 01 * 12 )
Formula Multiplier/Constant: .2 |
| 2nd through final year depreciation | C02 | 20 percent of NBV | Formula: ((01 + 02) * 12)
Formula Multiplier/Constant: .2 |
On Depreciation Rule Revisions, attach the formulas to Depreciation Method J1.
Enter 1 in the first Life Year From field.
Enter 1 in the first Life Year Thru field.
Enter C01 in the first Depreciation field.
Enter 2 in the second Life Year From field.
Enter 5 in the second Life Year Thru field.
Enter C02 in the second Depreciation field.
To create an asset master record, access Master Information and complete the following fields:
Item Number
Description
Company
Responsible Business Unit
Asset Cost Business Unit/Object/Subsidiary
Date Acquired
Location/Start Date
Current Item Quantity
Use 08/15/96 for the Date Acquired.
On Depreciation and Accounting Values, assign the user defined depreciation method J1 to the asset.
Enter AA in the Book field.
Enter 01/01/96 in the Depreciation Start Date field.
Enter J1 in the Depreciation Method field.
Enter 60 in the Life Months field.
Enter Y in the Depreciation Information field.
Enter I in the Method of Computation field.
On Cost Summary, enter the cost of the asset.
Enter 1,000 in the Inception to Date field.
Run the Compute User Defined Depreciation program (P12855).
Run the program as of period 6. No depreciation amount is calculated. This is correct.
Run the Compute User Defined Depreciation program (P12855) as of the following periods:
| Period | Depreciation Amount |
|---|---|
| 07 | 32.40 |
| 08 | 33.48 |
| 09 | 33.49 |
| 10 | 33.49 |
| 11 | 33.49 |
| 12 | 33.65 |
Total of depreciation for the first year is 200 (20 percent of asset cost).
On User Defined Codes Revisions for Depreciation Method (12/DM), create depreciation code Z1 (Zoka-Shokyaku, Straight Line)
Enter Z1 in the Code field.
Enter 1 in the Special Handling Code field.
Enter N in the Hard Coded field.
On Depreciation Rule Revisions, create depreciation method for Depreciation Method Z1.
Enter Z1 in Depreciation Method field.
Enter 36 in Life (Periods) field.
Enter A in the Initial Term Apportionment field.
Enter C in the Compute Direction field.
Enter 01/01/97 and 12/31/99 in the Service Date From/Thru fields.
Enter 01/01/97 and 12/31/99 in the Effective From/Thru fields.
Enter N in the Allow Negative Depreciation field.
On Depreciation Formula Revisions, create the following formulas:
| Formula | Formula ID | Calculation |
|---|---|---|
| 1st and subsequent years depreciation | Z11 | Formula: ( ( 10 / 03 ) * 12 ) *49
Formal Multiplier/Constant: .33 |
| Final year depreciation | Z12 | Formula: 10 + 02 |
On Depreciation Rule Revisions, attach the formulas to Depreciation Method Z1.
Enter 1 in the first Life Year From field.
Enter 2 in the first Life Year Thru field.
Enter Z11 in the first Depreciation field.
Enter B01 in the first Basis field.
Enter S01 in the first Salvage Value field.
Enter 3 in the second Life Year From field.
Enter 3 in the second Life Year Thru field.
Enter Z12 in the second Depreciation field.
Enter B01 in the second Basis field.
Enter S01 in the second Salvage Value field.
On User Defined Codes Revisions for Depreciation Method (12/DM), create depreciation code Z2 (Zoka-Shokyaku, Dble Dec Bal).
Enter Z2 in the Code field.
Enter 1 in the Special Handling Code field.
Enter N in the Hard Coded field.
On Depreciation Rule Revisions, create depreciation method for Depreciation Method Z1.
Enter Z2 in Depreciation Method field.
Enter 36 in Life (Periods) field.
Enter A in the Initial Term Apportionment field.
Enter C in the Compute Direction field.
Enter 01/01/97 and 12/31/99 in the Service Date From/Thru fields.
Enter 01/01/97 and 12/31/99 in the Effective From/Thru fields.
Enter N in the Allow Negative Depreciation field.
On Depreciation Formula Revisions, create the following formulas:
| Formula | Formula ID | Calculation |
|---|---|---|
| 1st and subsequent year depreciation | Z21 | Formula: (10 * 11/03) * 12
Multiplier: 2 Formula Multiplier/Constant: .33 |
| Final year depreciation | Z22 | Formula: ( 10 + 02 ) |
On Depreciation Rule Revisions, attach the formulas to Depreciation Method Z2.
Enter 1 in the first Life Year From field.
Enter 2 in the first Life Year Thru field.
Enter Z21 in the first Depreciation field.
Enter B01 in the first Basis field.
Enter S01 in the first Salvage Value field.
Enter 3 in the second Life Year From field.
Enter 3 in the second Life Year Thru field.
Enter Z22 in the second Depreciation field.
Enter B01 in the second Basis field.
Enter S01 in the second Salvage Value field.
| Formula | Formula ID | Calculation |
|---|---|---|
| 1st year depreciation | T11 | Formula: ( ( 10 / 03 ) + ( 10 / 03 * 12 ) ) * 49
Formula Multiplier/Constant: .33 |
| 2nd and subsequent years depreciation | T12 | Formula: ( 10 / 03 ) * 49 |
| Final year depreciation | T13 | Formula: (10 + 02) |
| Formula | Formula ID | Calculation |
|---|---|---|
| 1st year depreciation | T21 | Formula: (10 * 11 / 03)+( (10 * 11 / 03) * 12)
Multiplier: 2 Formula Multiplier/Constant: .33 |
| 2nd and subsequent years depreciation | T22 | Formula: (10 * 11 / 03)
Multiplier: 2 |
| Final year depreciation | T23 | Formula: (10 + 02) |