3 Defining Depreciation Methods for Germany

To define the depreciation methods for Germany, this chapter contains these topics:

Section 3.1, "Building,"
Section 3.2, "Declining Balance,"
Section 3.3, "Investment Tax Credit,"
Section 3.4, "Replacement Cost."

3.1 Building

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

3.1.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code GB for German Buildings.

Figure 3-1 General User Defined Codes screen (GB)

Description of "Figure 3-1 General User Defined Codes screen (GB)"

Complete the following fields with the values indicated below:

Field	Value
Code	GB
Description	German Buildings
Special Handling Code	1
Hard Coded	N

3.1.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 3-2 Depreciation Formula Revision screen

Description of "Figure 3-2 Depreciation Formula Revision screen"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE1
Description	German Building #1
Column Heading 1/2	Item Bal %
Formula	((10 * 11) * (06 / 49))

3.1.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method GB

3.1.3.1 Setting Up Reference Information and Conventions

Figure 3-3 Depreciation Rule Revisions screen (Reference)

Description of "Figure 3-3 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	GB
Rule Description	German Buildings #1
Life (Periods)	360
Initial Term Apport	Blank (defaults to 1st day of 1st month)
Compute Direction	I
In Service From/Thru	01/01/2000
Effective From/Thru	01/01/2000
Depr Expense Business Unit	1
Life Year Reference	1

3.1.3.2 Attaching the Formulas to Depreciation Method GB

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 5
Second Record: Life Years 6 through 13
Third Record: Life Years 14 through 30

First Record: Life Years 1 through 5

Figure 3-4 Depreciation Rule Revisions screen (Life Years 1 through 5)

Description of "Figure 3-4 Depreciation Rule Revisions screen (Life Years 1 through 5)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	5
Annual Multiplier	0.07000000
Depreciation	DE1
Basis	502
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 6 through 13

Figure 3-5 Depreciation Rule Revisions screen (Life Years 6 through 13)

Description of "Figure 3-5 Depreciation Rule Revisions screen (Life Years 6 through 13)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	6
Life Yr Thr	13
Annual Multiplier	0.03000000
Depreciation	DE1
Basis	502
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 14 through 30

Figure 3-6 Depreciation Rule Revisions screen (Life Years 14 through 30)

Description of "Figure 3-6 Depreciation Rule Revisions screen (Life Years 14 through 30)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	14
Life Yr Thr	30
Annual Multiplier	0.02500000
Depreciation	DE1
Basis	502
SC (Secondary Percentage Continuation)	1

3.2 Declining Balance

Defining this depreciation method includes the following task:

Setting up depreciation formulas

3.2.1 Setting up Depreciation Formulas

On Depreciation Formula Revision, define the following formulas:

Lower Limit 1000
Upper Limit 2500
Cost Less Salvage

Lower Limit 1000

Figure 3-7 Depreciation Formula Revision screen (Lower Limit 1000)

Description of "Figure 3-7 Depreciation Formula Revision screen (Lower Limit 1000)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE2
Description	10 years w/crossover
Column Heading 1/2	L.Limit1000
Formula	12
Multiplier/Constant	100000.000000

Upper Limit 2500

Figure 3-8 Depreciation Formula Revision screen (Upper Limit 2500)

Description of "Figure 3-8 Depreciation Formula Revision screen (Upper Limit 2500)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE3
Description	10 years w/crossover
Column Heading 1/2	U.Limit2500
Formula	12
Multiplier/Constant	250000.000000

Cost Less Salvage

Figure 3-9 Depreciation Formula Revision screen (Cost Less Salvage)

Description of "Figure 3-9 Depreciation Formula Revision screen (Cost Less Salvage)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE4
Description	10 years w/crossover
Column Heading 1/2	Cost-Salv
Formula	01 - 07

3.3 Investment Tax Credit

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

3.3.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code GT for German Investment Tax Credit (ITC).

Figure 3-10 General User Defined Codes screen (GT)

Description of "Figure 3-10 General User Defined Codes screen (GT)"

Complete the following fields with the values indicated below:

Field	Value
Code	GT
Description	German ITC
Special Handling Code	1
Hard Coded	N

3.3.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formulas:

ITC Amount A
ITC Amount B

ITC Amount A

Figure 3-11 Depreciation Formula Revision screen (ITC Amount A)

Description of "Figure 3-11 Depreciation Formula Revision screen (ITC Amount A)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE5
Description	ITC Amount A
Formula	12-10/05*06

ITC Amount B

Figure 3-12 Depreciation Formula Revision screen (ITC Amount B)

Description of "Figure 3-12 Depreciation Formula Revision screen (ITC Amount B)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE6
Description	ITC Amount B
Formula	42

3.3.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method GT

3.3.3.1 Setting Up Reference Information and Conventions

Figure 3-13 Depreciation Rule Revisions screen (Reference)

Description of "Figure 3-13 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	GT
Rule Description	German Investment Tax Credit
Life (Periods)	60
Initial Term Apport	Blank (defaults to 1st day of 1st month)
Compute Direction	C
In Service From/Thru	01.01.2000
Effective From/Thru	01.01.2000
Secondary Acct/%	6
Life Year Reference	1
Allow Negative Depreciation	1

3.3.3.2 Attaching the Formulas to Depreciation Method GT

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 5
Second Record: Life Year 5

First Record: Life Years 1 through 5

Figure 3-14 Depreciation Rule Revisions screen (Life Years 1 through 5)

Description of "Figure 3-14 Depreciation Rule Revisions screen (Life Years 1 through 5)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	5
Depreciation	101
Basis	502
SC (Secondary Percentage Continuation)	1

Second Record: Life Year 5

Figure 3-15 Depreciation Rule Revisions screen (Life Year 5)

Description of "Figure 3-15 Depreciation Rule Revisions screen (Life Year 5)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	5
Depreciation	DE5
Basis	DE6
SC (Secondary Percentage Continuation)	2

3.4 Replacement Cost

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

3.4.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code GR for German Replacement Cost.

Figure 3-16 General User Defined Codes screen (GR)

Description of "Figure 3-16 General User Defined Codes screen (GR)"

Complete the following fields with the values indicated below:

Field	Value
Code	GR
Description	German Replacement Cost
Special Handling Code	1
Hard Coded	N

3.4.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 3-17 Depreciation Formula Revision screen (GR)

Description of "Figure 3-17 Depreciation Formula Revision screen (GR)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	DE7
Description	Replacement Cost
Formula	((01/45)*31)

3.4.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formula to depreciation method GR

3.4.3.1 Setting Up Reference Information and Conventions

Figure 3-18 Depreciation Rule Revisions screen (Reference)

Description of "Figure 3-18 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	GR
Rule Description	German Replacement Cost
Life (Periods)	60
Initial Term Apport	Blank (defaults to 1st day of 1st month)
Compute Direction	C
In Service From/Thru	01.01.1997
Effective From/Thru	01.01.1997
Allow Negative Depreciation	1

3.4.3.2 Attaching the Formula to Depreciation Method GR

Attach the following formula to the depreciation method:

Figure 3-19 Depreciation Rule Revisions screen (Method GR)

Description of "Figure 3-19 Depreciation Rule Revisions screen (Method GR)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	5
Depreciation	DE7
Basis	502
SC (Secondary Percentage Continuation)	1