Method 15, Fixed Percentage on Cost

The system calculates the fixed percent of cost depreciation method as follows:

Cost * (fixed percent) = (year's depreciation)

(Year's depreciation) / (number of normal periods) =(period depreciation)

You must indicate the current year-to-date (C) or current period (P) method of computation with this depreciation method. The current period method is the same as the current year-to-date with the exception that it does not catch up depreciation amounts within the year. If you run the first depreciation in March, the system calculates depreciation for the month of March only. The system does not calculate depreciation for January and February.