This is an accelerated depreciation method that allocates the largest portion of the cost of an asset to the early years of its useful lifetime. If you use this method, you must enter a fixed yearly percentage.
The program uses this formula for calculating depreciation amounts:
Depreciation Amount = (Declining-Bal. % * Number of Depreciation Days * Depr. Basis) / (100 * 360)
The depreciable basis is calculated as the book value less posted depreciation since the starting date of the current fiscal year.
The posted depreciation amount can contain entries with various posting types (write-down, custom1 and custom2) posted since the starting date of the current fiscal year. These posting types are included in the posted depreciation amount if there are check marks in the Depreciation Type and the Part of Book Value fields in the FA Posting Type Setup window.
Fixed Assets Depreciation Methods
Fixed Asset Depreciation Setup