Create an Annuity Depreciation Method

This task shows you how to create a formula-based annuity depreciation method for a life of four years.

  1. In the Setup and Maintenance work area, click Fixed Assets > Manage Depreciation Methods.
  2. Click the Create icon.
  3. In the Create Depreciation Method page, enter this information:
    Field Value
    Name ANNUITY
    Description Enter a description of your annuity depreciation method.
    Reference Data Set Common Set
    Method Type Formula
    Calculation Basis NBV
    Depreciation Basis Rule Period End Balance
    Depreciate in year retired checkbox Enabled
    Life in Years 4
    Life in Months 0
    Annuity depreciation method checkbox Enabled
  4. In the Depreciation Formula section, click the Create icon.
  5. In the Define Formula dialog box, enter this information for the formula: ( ( ( <Annuity compound interest rate> * Power ( 1 + <Annuity compound interest rate> , <Remaining life from current period> ) ) / ( Power ( 1 + <Annuity compound interest rate> , <Remaining life from current period> ) - 1 ) ) * 12 - ( <Annuity compound interest rate> * 12 ) )
  6. Click OK.
  7. Click Save.
Note: To add another life in years and life in months for the ANNUITY method, enter the above information again with a new life in years and life in months.