About Depreciation Scheduler

The Sample model (Sample.alc) that comes with Strategic Modeling contains an example that you can use to see how the Depreciation Scheduler works.

Note:

Depreciation scheduler works only in Oracle Smart View for Office (the calculations work anywhere. However, there is no editor on the Strategic Modeling Web).

Load the Sample model into Smart View, go to the All Accounts group on the Account View, and search for v2190.01 (Depreciation Expense), which is calculated using the Depreciation Scheduler. Opening the Forecast Method dialog for this account, you notice that it uses a Freeform forecast type with the formula, "@depr(v2170.01,5 year SL". The @depr function references the "5 year SL" (five year, straight line) depreciation schedule stored in the Depreciation Scheduler. Depreciation is calculated by applying the stored schedule to a class of assets being acquired. The results are summed to give the total depreciation for the current year, in this case, v2170.01 (Fixed Capital Investment).

Open the audit trail for v2190.01. As you drill down the calculation, you notice that in any given year, the first year’s depreciation percentage is applied to the current year of Fixed Capital Investment, the second year to the previous year, and so on for the length of the schedule. With the results being summed to give the total depreciation for the current year.