You can use the Create Sum of Digits Table batch job to set up a depreciation table for the Sum of Digits depreciation method.
First, set up a new depreciation method in the Depreciation Table Card window, and then click Functions, Create Sum of Digits Table.
In the No. of Years field, enter the number of years over which the fixed asset will be depreciated.
When you click OK to run the batch job, the program creates a depreciation table on the lines in the Depreciation Method Card window.
If a fixed asset is depreciated over 4 years, then the depreciation each year is calculated like this:
Sum of Digits = 1 + 2 + 3 + 4 = 10
Depreciation
1. year = 4/10
2. year = 3/10
3. year = 2/10
4. year = 1/10
If you enter 4 in the No. of Years field and run the Create Sum of Digits batch job, the following depreciation table will be created:
|
Period No. |
Period Depreciation |
|
1 |
40.00 |
|
2 |
30.00 |
|
3 |
20.00 |
|
4 |
10.00 |