Depreciation Methods Examples

Deltek is set up to use the straight-line method of depreciation, but you can set up additional methods for calculating depreciation.

Set up depreciation methods on the Methods tab in Settings > Accounting > Asset Management. Use this tab to enter the useful life, recovery years, periods, and percentages for each depreciation method that you use. You can distribute asset costs based on time or use, employing either a regular rate or an accelerated rate.

After you configure the Asset Management application and set up the different methods of depreciation that your enterprise will use, you can enter a depreciation method for each asset item in the Equipment hub, in the Method field on the GL Book tab.

Related Topics:

  • Straight-line Method Example
    The Asset Management application comes set up to calculate the straight-line method of depreciation. Use this method to calculate depreciation based on the cost of the asset being reduced by an equal amount in each accounting period over the asset's useful life.
  • Modified Accelerated Cost Recovery System (MACRS) Example
    Use the MACRS tax depreciation method to recover the capitalized cost (basis) of tangible property that was placed in service after 1986.
  • Sum of Years Digit Example
    Use the Sum of Years Digit method when the asset is more productive when it is new and therefore depreciation should be accelerated.
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