4 Defining Depreciation Methods for Italy
To define the depreciation method for Italy, this chapter contains the topic:
4.1 Anticipated Depreciation - Ammortamento Anticipato
Defining this depreciation method includes the following tasks:
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Adding a user defined code
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Setting up depreciation formulas
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Setting up the depreciation method
4.1.1 Adding a User Defined Code
On General User Defined Codes for Depreciation Method (12/DM), create code IT for Ammortamento Anticipato.
Figure 4-1 General User Defined Codes screen (IT)
Description of "Figure 4-1 General User Defined Codes screen (IT)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Code | IT |
| Description | Italian Anticipato |
| Special Handling Code | 1 |
| Hard Coded | N |
4.1.2 Setting Up Depreciation Formulas
On Depreciation Formula Revision, define following formula:
Figure 4-2 Depreciation Formula Revision screen (Last Year)
Description of "Figure 4-2 Depreciation Formula Revision screen (Last Year)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Formula ID | 012 |
| Description | Ammortamento Anticipato |
| Formula | ((10*11)/49)*06 |
4.1.3 Setting Up the Depreciation Method
On Depreciation Rule Revisions, set up the depreciation method.
Setting up the depreciation method includes the following tasks:
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Setting up reference information and conventions
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Attaching the formulas to depreciation method IT
4.1.3.1 Setting Up Reference Information and Conventions
Figure 4-3 Depreciation Rule Revisions screen (Reference)
Description of "Figure 4-3 Depreciation Rule Revisions screen (Reference)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Depreciation Method | IT |
| Rule Description | Italian Anticipated Depreciation |
| Life (Periods) | 120 |
| Initial Term Apport | W |
| Compute Direction | C |
| In Service From/Thru | 01/01/2005 |
| Effective From/Thru | 01/01/2005 |
| 1st Year Spread | 1 |
| Last Year Spread | 1 |
| Secondary Acct/% | 7 |
4.1.3.2 Attaching the Formulas to Depreciation Method IT
Attach the following formulas to the depreciation method:
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First Record: Life Years 1 through 3
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Second Record: Life Years 1 through 3
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Third Record: Life Years 4 through 999
First Record: Life Years 1 through 3
Figure 4-4 Depreciation Rule Revisions screen (First Record)
Description of "Figure 4-4 Depreciation Rule Revisions screen (First Record)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Life Yr Frm | 1 |
| Life Yr Thr | 3 |
| Annual Multiplier | 0.15000000 |
| Depreciation | 012 |
| Basis | 502 |
| SC (Secondary Percentage Continuation) | 1 |
Second Record: Life Years 1 through 3
Figure 4-5 Depreciation Rule Revisions screen (Second Record)
Description of "Figure 4-5 Depreciation Rule Revisions screen (Second Record)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Life Yr Frm | 1 |
| Life Yr Thr | 3 |
| Annual Multiplier | 0.15000000 |
| Depreciation | 012 |
| Basis | 502 |
| SC (Secondary Percentage Continuation) | 2 |
Third Record: Life Years 4 through 99
Figure 4-6 Depreciation Rule Revisions screen (Life Years 4 through 99)
Description of "Figure 4-6 Depreciation Rule Revisions screen (Life Years 4 through 99)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Life Yr Frm | 4 |
| Life Yr Thr | 999 |
| Annual Multiplier | 0.15000000 |
| Depreciation | 012 |
| Basis | 502 |
| SC (Secondary Percentage Continuation) | 1 |