This window is used to modify the depreciation parameters for the displayed asset.

It is called from the Actions menu in the Assets management function.

..\FCT\SEEINFOChanging the method is prohibited:

- Inactive assets,
- assets with the In template holding type,
- update 8.0.0 and higher: for assets classified as for sale,
- for assets which have been the object of an actual asset issue,
- for assets in the process of an intra-group transfer.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

This window is composed of:

  • a header containing the asset identification information,
     
  • the  Parameters tab that is used to enter the parameters related to the new depreciation methods.

Management method of the window

The management mode is the same for this window as for all the actions that can be applied to assets.

It is therefore advisable:

1/ First, to enter the parameters linked to the action being implemented.

2/ Then, it is possible:

- Either to directly validate the entry of the new parameters by clicking on [OK]. A consistency check is then carried out on the new method; if an error occurs, a message is displayed and prevents the updating of the asset; it is then necessary to correct the parameters with errors.

- Or to go through an intermediate stage of control of the parameters entered by clicking [Control]. A window is displayed, which allows both the visualization of the result of applying the new parameters on the asset and on its depreciation plans when these parameters are coherent and also to repair, in the color display, any lines with errors as well as displaying the corresponding error messages. An asset with an error is not updated with the new parameters; it is displayed with the parameters of the original method.

Click on the button [End] button to close the control window; the parameter entry window is displayed again, making it possible either to confirm by clicking [OK] if no error has been detected, or to correct any parameter in error.

Note: This stage is part of the management method which is the same for different processing tasks, whether they concern a mass or an individual processing. Its only real usefulness is in mass processings, where it authorizes, if necessary, manual adjustment of the values for certain processed assets. In unit processings, this window can be accessed only in view mode, the entered parameters affecting only one single asset; their adjustment is done directly in the entry window of these parameters.

3/ If the parameters are correct, the [OK] is used to validate their application and to return to the Assets screen in modification mode. The processing is taken into account only after saving the asset.

Header

The header displays the financial asset reference as well as its description once the method change action is called. This information cannot be modified.

Business object

Reference (field OBJREF)

Reference for the financial asset. 

Description (field OBJDES)

Description of the financial asset.

Tab Setup definition

This tab is made up of a table containing as many lines as there are depreciation plans managed by the company.

This table is used:

  • To carry out any required adjustment on one or more elements in the depreciation method after having set the Update flag, which precedes it, to the value Yes . The different management rules belonging to each parameter, are specified at the level of the field descriptions.
     
  • To specify the effective date of the method change. It can either be:
    - the Period start date
    - the FY start date
    -     the Depreciation start date.

    The selection of this date depends on the start date of the asset depreciation. The various possibilities as well as the associated processing terms are described below.
  • To specify the management terms of the potential variance on depreciation, when the change of method takes effect at the asset depreciation start date, and when this date is earlier than the start date of the current fiscal year.
    Note: when the effective date is later than the depreciation start date, the asset presents an accumulated depreciation; this is why the method change applies to the net value of the asset and causes a change of depreciation method; the equivalent residual method being preferred.

After entry of the parameters, it is necessary either to validate using the buttonbutton, or to perform a check of the information entered via. See the management mode of the window described above.

Grid New deprec methods

Plan (field DPRPLND)

The code for the depreciation plan.

Chg effective start (field MTCTIATYP)

Help common to the unitary and mass processing of the method change.
This field is used to select the date at which the mode change will be effective.
In a unitary process, the selections are available according to the depreciation start date of the asset:

  • If the depreciation start date is before the start of the current financial year, the mode change can be effective on the Depreciation start date, Financial year start date or Period start date.
  • If the depreciation start date is after or equal to the start of the current financial year, and before the start of the current period, the mode change can be effective on the Depreciation start date, or Period start date.
  • If the depreciation start date is after or equal to the start of the current period, the mode change is automatically and necessarily effective on the Depreciation start date.

Specificities: if the depreciation mode is LB (Belgianlinear) and the specific rule is changing from Depreciation charge x2 to Depreciation charge x2 abandoned, then the mode change is necessarily effective on the Financial start date.

For more details and examples on the process terms related to the effective date selection for a mode change, see thefunction documentation.
Rec. meth chge var (field MTCDEVADJ)

Help common to the unitary and mass processing of the method change.
This field is used to indicate how the difference will be managed on the depreciation total following a depreciation method change.
This field can be entered if the depreciation start date is before the financial start date of the current plan, and if the effective date for the mode change is equal to the depreciation start date.
To know more about the management terms for this variance, see the documentation related to the Mode change function.
 
Specificities: If the depreciation mode is IT (Ordinario / Anticipato) and the Exceptional depreciation rate is other than 0, the variance in the depreciation total cannot be processed by the Financial year exceptional charge or Period exceptional charge recovery option.
RV update (field RSDFLG)

Help common to the unitary and mass processing of the method change. This indicator can be viewed only in mass-processing mode. It must be activated if a modification of the residual value is required. The entry of this value is carried out in the Control window.

Update-> (field STRFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Depr. start (field STRDPRDATD)

Help common to the unitary and mass processing of the method change. This field can only be entered if the Upd indicator is set to Yes. It is used to enter the depreciation start date for the asset, or in the case of a mass process for the group of assets. The modification of the amortisation start date is authorised only if the asset has not been closed or if the amortisation start date before the modification is superior or equal to the current period start date.

Current mode (field DPMO)
Method (field DPMD)

Enter the depreciation mode for the asset or, in the case of a mass process, for all the selected assets. This mode should be authorized for the related company, plan and country.

The choice of the mode is submitted to the following restrictions:

  • On a French company Fiscal plan, the method can only be DF - French decreasing, or LP French straight line.
  • The CA - Amortization expense / Gross value or RA - Amortization expense / Net value modes can only be used on a plan of the Accounting and fiscal context other than the Subsidy plan and only if the asset holding type is In concession. If the management mode of the concession is Transmitted by renewal, the depreciation method of the plan designated to manage the amortization expense must be:
    - SA, when it comes to renewing assets.
  • The OPE - Operation Units mode can only be used on a plan belonging to the context retained for the OPE management and only if the asset has been attached to a Production workbench.

The modification of the amortization mode can lead to the modification of the Depreciation start date of the plan and its loading, according to the setup carried out at the level of the Depreciation method, either with the First use date, or with the Purchase date, or with the Posting date.
Update-> (field ENDDPRFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Depr. end (field ENDDPRDATD)

This field is only available if the Update check box is selected to force the end depreciation date for the asset, or in the case of a mass process, for all assets.
It is only authorized to force the depreciation end date if the RA - Amortization expense / net Value or RE - Residual in day pro rata method is used. The date entered must be later than the start date for the fiscal year of the concerned plan context.

Current duration (field DPRDURO)
Update-> (field DURFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Depre. durn (field DPRDURD)

Help common to the unitary and mass processing of the method change. This field can only be entered if the Upd indicator is set to Yes. It is used to enter the depreciation duration to be applied to the asset or in the case of a mass process, to all of the selected assets.

The rules for the entry and the value of the depreciation duration are a function of the depreciation method entered:

  • The duration can be entered except if the method has the value: WD (With depreciation), OU (Operation units), PI (Inflated progressive), OR (Ordinario), AN (Anticipato) or IT (Ordinario/Anticipato).
    In this case, the duration will be equal to 0 and it cannot be modified.
    If the mode has FM for value (Shapes and moulds), the duration is automatically of 3 years.
    If the mode has LG for value(Line), the duration is automatically of 1.5 year.
    If the mode has LP for value (French straight-line), and the specific rule is 12 months software, the duration is automatically of 1 year.
  • It is mandatory that it is greater than or equal to 3 years for the Digressive type methods.
  • If the depreciation method is a Free, method, the duration is at least equal to the minimum duration specified for this method.
Current rate (field DPRRATO)
Update-> (field DPRRATFLGD)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Rate (field DPRRATD)

This field is only available if the Update check box is selected to enter the depreciation rate for the asset or in the case of a mass process, for all the selected assets.

The rules for the entry of the depreciation rate are a function of the depreciation method entered:

  • When one of the following modes are entered, this field cannot be entered, and the rate must be set to 0:
    CA (Amortization expense / Gross value), DA (German digressive), DE (Spanish declining), FD (French declining), DX (German mixed declining), DP (Portuguese declining), DV (Portuguese mixed declining), DI (Spanish mixed declining), FM (Shapes and moulds), LG (Line), PR (Progressive), RA (Amortization expense / Net value), RE (Residual), SA (Without depreciation), SY (Softy), UD (Declining balance), UL (Straight line), OU (Operation units)
  • When the method entered has the value PI (Inflated progressive), AN (Anticipato), OR (Ordinario) or IT (Ordinario/Anticipato), it is mandatory to enter the rate.
  • When the entered mode is the DB one (Belgian declining), this rate, when entered, must be higher than the linear rate and lower than the double of the straight rate.
Update-> (field PRATYPFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Prorata (field PRATYPD)

The pro rata type can be entered only if the depreciation method on the schedule is one of the three following types: UL (Straightline), UD (Declining balance) or RE (Residual).
Note: The Day pro rata type is not authorized for the UL and UD methods.
Update-> (field DPRRA2FLGD)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Exc. depr rate (field DPRRAT2D)

Help common to the unitary and mass processing of the method change.

This field is linked with the management of the IT (Ordinario/Anticipato) mode. It is displayed only if the mode is allowed for company's country and can be entered only if the Maj flag is set to Yes. It is used to enter the depreciation rate used by the IT depreciation method (Ordinario/Anticipato) in order to calculate the Anticipato depreciation.

  • The rate value should be lower than or equal to the depreciation rate value.
  • If the asset is new, the rate can be entered only for the first three years of depreciation.
  • In the case of a second hand asset, the rate can be entered only for the first year of depreciation.
Update-> (field RSDVALFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Residual value (field RSDVALD)

Help common to the unitary and mass processing of the method change. This field is only visible during a unitary process and can only be entered if the Upd indicator is set to Yes.
It is used to enter the residual value of the asset in another plan than the subsidy plan. The residual value must not be greater than the NV at the start of the period (or start of the financial year if the periods are not managed).
Update-> (field ALWFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Specif. rule - fiscal help (field ALWCODD)

Help common to the unitary and mass processing of the method change.
This field can only be entered if the Upd indicator is set to Yes.
It is used to enter the code for a specific rule to be applied during the depreciation of an asset, or in the case of a mass process a group of selected assets.
The rule to apply is selected according to the depreciation mode selected and/or the depreciation plan. For example, rules generating fiscal help (Help 25 %, Help 50 %, Energy, Depreciation rise 30 %, ...) can only be applied for the Fiscal plan.
Tax credit amount (field ALWAMT)

This field is used to enter a fiscal help. The amount should be less than the net value at the period start.
Data entry is disabled for plans on which one of the following rules has been specified:

  • Help 25 %, Help 50 %
  • Depreciation rise 30 %
  • Rate rise 30%
  • Energy
  • Increase of 1 of the degressivity factor
  • Dedicated to research
  • Press 39 bis
  • 40% deduction [15apr15 - 14apr17]

Note on the 40% deduction [15/04/15-14/04/17] Specific rule for a French company:

To apply this rule, the purchase date must be on or before 14/04/17. If not, you receive the message "If the specific rule no longer applies at the purchase date, make sure you have the rights to apply it. Do you confirm?" You can select Yes or No to dismiss the message.

Yes: Applies the rule even if the purchase date is past 14/04/17.

No: Creation or updates are not applied and you need to change the Specific rule to None or cancel the action.

 
Update-> (field ACLCOEFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Acceleration coeff. (field ACLCOED)

The depreciation accelerator coefficient is used to manage depreciation modes: Declining balance, Belgian declining, Russian straight-line, Russian declining, Russian constant and Softy Russian modes. It can only be modified for these depreciation modes.
When this factor is applied to the Belgian declining mode, it must be included between 1 and 2 and contain up to 2 decimals (examples: value 2 corresponds to 200 %; the value 1.5 corresponds to 150 %).
Standard (field PLNSTD)

This field reminds the user of the accounting standard retained for the management of the depreciation plan.

Potential effective dates and processing terms

The table below lists the different potential choices for the effective date of the method change and the adjustment or processing terms applied, according to the asset depreciation start date.

1/ The depreciation start date is less than the start date of the current FY fiscal year.

Effective date 

Processing Terms 

 Depreciation start date

The depreciation total on FY-1 end is recalculated.
The variance between the new and the former total can be processed, as the user wishes, according to one of the following modalities:
- In carry-forward See Example 1.
- Fiscal year exceptional charge. See Example 2.
- Period exceptional charge. See Example 3.
- Integrated to the fiscal year charge. See Example 4.
- Integrated to the period charge. See Example 5.

 Current F Fiscal year start date

The depreciation total on FY-1 end is not recalculated.
The F fiscal year charge will be recalculated using the new method, which is necessarily based on a residual method applied to the depreciation net value at the start of the F fiscal year.
The charge of the P period will contain the regulation of the charges of the closed periods.
See Example 6.

 Start date of current period P

The depreciation total on FY-1 end is not recalculated.
The depreciation total of the closed periods of the current fiscal year is not recalculated.
The "residual" F fiscal year charge [P period start - F fiscal year end] will be calculated using the new method, which is necessarily based on a residual method applied to the depreciation net value at the start of the P period.
This charge of the "residual" fiscal year will be distributed on the P period and the following of the F fiscal year.
The charge of the F Fiscal year will be equal to the total: charges of closed periods before method change + charge of "residual" fiscal year.
See Example 7.

2/ The depreciation start date is greater than or equal to the start date of the current FY and less than the start date of the current period P.

Effective date 

Processing Terms 

 Depreciation start date

The charge of the F fiscal year will be recalculated using the new method.
The charge of the P period will contain the regulation of the charges of the closed periods.
See Example 8.

 Start date of current period P

The depreciation total of the closed periods of the current fiscal year is not recalculated.
The depreciation charge of the "residual" fiscal year [P period start - F Fiscal year end] will be calculated using the new method, mandatorily based on a residual method.
This charge of the "residual" fiscal year will be distributed on the P period and the following of the F fiscal year.
The charge of the F Fiscal year will be equal to the total: charges of closed periods before method change + charge of "residual" fiscal year.
See Example 9.

 3/ The depreciation start date is greater than or equal to the start date of the current period P.

Effective date 

Processing Terms 

 Depreciation start date

The charge of period P (or the depreciation start period) will be recalculated based on the new depreciation method.

A list of examples is provided below, illustrating the implementations and processing terms available.

Effective date and consecutive method changes:

During an ongoing fiscal year, multiple depreciation method changes can be carried out. The implementation of a method change cannot be prior to the previous change.
Example
Let us consider a fiscal year containing 4 periods: P1, P2, P3 and P4.

  • During P2, a change of method is made to be effective at Period start.
    During P3, only a change of method to be effective at Period start will be possible.
  • During P1, a change of method is made to be effective at Fiscal year start.
    During P3, a change of method to be effective at Fiscal year start or a change of method to be effective at Period start will be possible.

Examples of method change

Depreciation start date less than Current fiscal year FY
  • Example 1

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Carry forward balance

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Carry-forward
(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

(3,005.46)
(1) 2,505.05

1,667.00

(2) 333.50

826.65

(-500.41)

01/07/06 -
30/09/06

2,505.05

1,667.00

420.17

1,246.82

01/10/06 -
31/12/06

2,505.06

1,667.00

420.18

1,667.00

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00

(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Carry-forward at the start of F financial year.
The new total at the end of F-1 (2,505.05) cancels and replaces the previous one (3,005.46), even though the forcing flag is set to Yes for this total.

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
New total at the end of 2005 re-caculated after the change of method + Charge of 2006
Let us consider: 2,505.05 / 1,667.00 = 4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 2

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the fiscal year

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Fiscal
exception.(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,667.00

(2) 333.50

826.65

(-500.41)
-248.15

01/07/06 -
30/09/06

3,505.46

1,667.00

420.17

1,246.82

(-500.41)
-126.13

01/10/06 -
31/12/06

3,505.46

1,667.00

420.18

1,667.00

(-500.41)
-126.13

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.0

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.0

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.0

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the F fiscal year, this exceptional charge must be distributed on the current period and the following ones.
For the period [01/04/06 - 30/06/06]: -500.41 x (181 / 365) = -248.15
For the period [01/07/06 - 30/09/06]: -500.41 x (273 / 365) - (-248.5) = -126.13
For the period [01/10/06 - 30/12/06]: -500.41 - -374.28 = -126.13

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 -  500.41 =  4,172.05

Depreciation start date less than Current fiscal year FY
  • Example 3

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the period

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Fiscal
exception.(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,667.00

(2) 333.50

826.65

(-500.41)

01/07/06 -
30/09/06

3,505.46

1,667.00

420.17

1,246.82

01/10/06 -
31/12/06

3,505.46

1,667.00

420.18

1,667.00

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the P period, when the change of method was carried out.

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 -  500.41 =  4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 4

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 integrated to the charge of the fiscal year

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(1) 1,166.59

(2) 85.35

578.50

01/07/06 -
30/09/06

3,005.46

1,166.59

294.05

872.55

01/10/06 -
31/12/06

3,005.46

1,666.59

294.04

1,166.59

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/07

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00



(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year. Let us consider 1,667.00 - 500.41 = 1,169.59

(2) The charge of the fiscal year is recalculated using the new duration, which contains the variance on the total at the end of F-1. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
1,166.59 X (181 days / 365 days) = 578.50 - 493.15 = 85.35

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05



Depreciation start date less than Current fiscal year FY
  • Example 5

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 integrated to the charge of the period

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,166.59

(1) -166.91

326.24

01/07/06 -
30/09/06

3,005.46

1,166.59

(2) 420.17

746.41

01/10/06 -
31/12/06

3,005.46

1,666.59

420.18

1,166.59

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year (1,667.00 - 500.41 = 1,169.59) and posted in the charge of the P period.
Let us consider [1,667.00 x (181 / 365) - 493.15] + (-500.41) = -166.91

(2) The charge of each following period does not contain any variance on the total at the end of F-1. The calculation is as follows:
1,667.00 x (273 / 365) - 326.24 + (500.41 ) = 420.17 --> total at the end of 3rd period = 746.41
1,667.00 c (365 / 365) - 746.41 + (500.41 ) = 420.18 --> total at the end of 4th period = 1,166.59

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 6

    Effectiveness: F Fiscal year start date
    Imposed terms: Recalculation of the FY fiscal year using the new method based on a residual mode. The charge of the P period contains the regulation of the charges of the closed periods.

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

1,005.46

01/01/05 -
31/12/2005

2,000.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(1) 1,554.82

277.87

771.02

01/07/06 -
30/09/06

3,005.46

1,554.82

391.90

1,162.92

01/10/06 -
31/12/06

3,005.46

1,554.82

391.30

1,554.82

01/01/07 -
31/12/07

01/01/07 -
31/03/07

4,560.28

1,554.81

383.38

383.38

01/04/07 -
30/06/2007

4,560.28

1,554.81

387.64

771.02

01/07/07 -
30/09/2007

4,560.28

1,554.81

391.89

1,162.91

01/10/07 -
31/12/07

4,560.28

1,554.81

391.90

1,554.81

01/01/08 -
31/12/08

6,115.09

1,559.08

01/01/09 -
31/12/2009

7,674.17

1,554.81

01/01/10 -
31/12/10

9,228.98

771.02

01/01/11 -
31/12/11

10,000.00


(1) The new charge of 2006 fiscal year equals to: Net value start of 2006 x (number of days in 2006 / number of days between 01/01/2006 and the depreciation end date: 30/06/2010).
Let us consider: (10,000 - 3005.46) x (365 / 1,642 days) = 1,554.82
The duration change is performed in the current period [01/04/2006 - 30/06/2006]; the charge of this period is equal to: Charge of fiscal year x (number of days until 30/06/2006 / number of days in 2006) - Depreciation total of P-1.
Let us consider: [1,554.82 x (181 / 365)] - 493.15 = 277.87


Depreciation start date less than Current fiscal year FY
  • Example 7

    Effectiveness: P Period start date.
    Imposed terms: Recalculation of the "residual" fiscal year charge using the new method based on a residual mode. This charge of the "residual" fiscal year is distributed on the P period and the following of the F fiscal year.

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

1,005.46

01/01/05 -
31/12/2005

2,000.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(2) 1,645.14

(1) 381.20

874.35

01/07/06 -
30/09/06

3,005.46

1,645.14

385.40

1,259.75

01/10/06 -
31/12/06

3,005.46

1,645.14

385.39

1,645.14

01/01/07 -
31/12/07

01/01/07 -
31/03/07

4,650.60

1,529.00

377.01

377.01

01/04/07 -
30/06/2007

4,650.60

1,529.00

381.21

758.22

01/07/07 -
30/09/2007

4,650.60

1,529.00

385.39

1,143.61

01/10/07 -
31/12/07

4,650.60

1,529.00

385.39

1,529.00

01/01/08 -
31/12/08

6,179.60

1,533.19

01/01/09 -
31/12/2009

7,712.79

1,529.00

01/01/10 -
31/12/10

9,241.79

758.21

01/01/11 -
31/12/11

10,000.00


(1) The charge of the method change period is calculated as follows:
(10,000 - 3,005.46 - 493.15 ) x (275 days / 1,552 days) x (91 days / 275 days) = 381.20
1,552 days = depreciation residual duration, corresponding to the period [01/04/2006 - 30/06/2010]
275 days = residual duration in the fiscal year, equal to the period [01/04/2006 - 31/12/2006]
91 days = period duration [01/04/2006 - 30/06/2006]

(2) The new charge of 2006 fiscal year equals to:
493.15 + [(10,000 - 3,005.46) x (275 days / 1,552 days)] = 1,645.14


Depreciation start date greater than or equal to the current FY fiscal year start and less than the current period P start
  • Example 8

    Effectiveness: Depreciation start date
    Imposed terms: Recalculation od the charge of F fiscal year using the new method
    The charge of the P period contains the regulation of the charges of the closed periods.

    - Depreciation start date: 01/02/06 (i.e. 334 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Duration change (extended to 4 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/06 -
31/12/06

01/01/06 -
31/03/06

1,830.14

323.29

323.29

01/04/06 -
30/06/06

2,287.67

(1) 704.11

1,027.40

01/07/06 -
30/09/06

2,287.67

630.13

1,657.53

01/10/06 -
31/12/06

2,287.67

630.14

2,287.67

01/01/07 -
31/12/07

01/01/07 -
31/03/07

2,287.67

2,500.00

616.44

616.44

01/04/07 -
30/06/2007

2,287.67

2,500.00

623.29

1,239.73

01/07/07 -
30/09/2007

2,287.67

2,500.00

630.13

1,869.86

01/10/07 -
31/12/07

2,287.67

2,500.00

630.14

2,500.00

01/01/08 -
31/12/08

4,787.67

2,500.00

01/01/09 -
31/12/2009

7,287.67

2,500.00

01/01/10 -
31/12/10

9,787.67

212.33

01/01/11 -
31/12/11

10,000.00


(1) The charge of the fiscal year is recalculated using the new duration. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
2,287.67 X (150 days / 334 days) = 1,027.40 - 323.29 = 704.11


Depreciation start date greater than or equal to the current FY fiscal year start and less than the current period P start
  • Example 9

    Effectiveness: P Period start date.
    Imposed terms: Recalculation of the "residual" fiscal year charge using the new method based on a residual mode. This charge of the "residual" fiscal year is distributed on the P period and the following of the F fiscal year.

    - Depreciation start date: 01/02/06 (i.e. 334 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Duration change (extended to 4 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/06 -
31/12/06

01/01/06 -
31/03/06

1,830.14

323.29

323.29

01/04/06 -
30/06/06

(2) 2,221.36

(1) 628.09

951.38

01/07/06 -
30/09/06

2,221.36

634.99

1,586.37

01/10/06 -
31/12/06

2,221.36

634.99

2,221.36

01/01/07 -
31/12/07

01/01/07 -
31/03/07

2,221.36

2,519.26

621.19

621.19

01/04/07 -
30/06/2007

2,221.36

2,519.26

628.09

1,249.28

01/07/07 -
30/09/2007

2,221.36

2,519.26

634.99

1,884.27

01/10/07 -
31/12/07

2,221.36

2,519.26

634.99

2,519.26

01/01/08 -
31/12/08

4,740.62

2,526.16

01/01/09 -
31/12/2009

7,266.78

2,519.26

01/01/10 -
31/12/10

9,786.04

213.96

01/01/11 -
31/12/11

10,000.00


(1) The charge of the method change period is calculated as follows:
(10,000 - 323.29 ) x (275 days / 1,402 days) x (91 days / 275 days) = 628.09
1,402 days = depreciation residual duration, corresponding to the period [01/04/2006 - 31/10/2006]
275 days = residual duration in the fiscal year corresponding to the period [01/04/2006 - 31/12/2006]
91 days = period duration [01/04/2006 - 30/06/2006]

(2) The new charge of 2006 fiscal year equals to:
323.29 + [ (10,000 - 323.29 ) x (275 days / 1,402 days)] = 2,221.36


Processing description

An method change carries out the following operations:

  • Application of the new parameters entered.
     
  • Updating of the asset and its depreciation plans according to the processing terms described above and linked to the choice of effective date for the change.
  • Generation of a Method change event (FASMTC).
    - The operation effective date is recorded in the EVTDAT field; it receives the effective date of the method change.
    - The accounting effective date is saved in the CPTDATINT field; it is assigned the highest date among the following dates: Start date of the current period, Depreciation start date.

    The user can view the events in the Events journal window that can be accessed from the Other info tab of the Fixed assets management function.
     
  • Archiving, in a dedicated table (DEPRECARC) of the depreciation plan before method change, if the company is submitted to the French legislation (FRA). It can be viewed in the Archived plan tab, accessible from the inquiry of the event detail.

Specific Buttons

Check

This button triggers a control window used to view in a grid, the new depreciation plans of the asset on each plan.

The potential lines with errors are displayed in color. The reason for each error can viewed in the Message column.

The non modified parameters and the parameters of the lines with errors are displayed with their initial value.

  • If there are no error in the lines, the next step is to click . The parameters screen is displayed again; click  to return to the Assets screen, then   to validate the new asset parameters in the database.
     
  • If there is at least one line with an error, it is necessary to click  then to return to correct the errors in the parameter entry screen. Then click on  to apply the new parameters to the asset or proceed again to the control of the new parameters entered.

Error messages

In addition to the generic error messages, the following messages can appear during the entry :

 No specific message is recorded. See generic messages.

Tables used

SEEREFERTTO Refer to documentation Implementation