Depreciation Methods Examples
Use Asset Management Configuration to define the types of depreciation methods that your firm requires for managing assets. Vision provides the straight-line method of depreciation, but you can add other methods and their respective calculations as needed.
You configure the types of depreciation on the Methods tab in . Use this tab to enter the useful life, recovery years, periods, and percentages to apply to 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 firm will use, you can enter a depreciation method for asset items in the Equipment Info Center. The depreciation calculation that is applied to each asset item is based on the method that is entered for the asset in the Method field on the GL Book tab. You can run depreciation as follows:
- Process depreciation for one or more asset items at a time.
- Run depreciation for your GL book or all the additional books that you have set up Asset Management Configuration.
- Schedule depreciation processing to occur automatically at a future time.
For depreciation processing for your GL book, you can manually post the depreciation journal entries in Transaction Posting, or you can have Vision automatically post the journal entries during depreciation processing. Depreciation journal entries for additional books are posted automatically during depreciation processing.
You can set up the type of depreciation processing that best meets your firm's requirements.
If you use Vision Multicompany, you must run depreciation processing separately for each company. Depreciation only applies to assets that belong to the active company.