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.