Depreciation methods

Enter the company code for which the depreciation mode is defined. If left empty, the mode is defined for all companies. A standard depreciation mode is always defined for all companies.

Enter a unique alphanumeric code. The maximum length is 8 characters.

Enter the description for the amortization expense method.

This button, only available on standard modes, is used to synchronize the description of the mode with the title of the 3228 local menu. This button is no longer available when the titles are synchronized.

Inactive modes are not displayed in selection windows and cannot be used.

Select the depreciation method:

Free: Any setting can be modified.

Standard: Only these fields can be modified: Active, Limited to country, Limited to legislation, Depre start date, and Residual equivalent method.

For standard methods, this field displays the description for the selected method.

For a standard depreciation method, you can limit the use of the method to a specific country. If left blank, the method can be used for all countries.

In other screens, available methods are filtered by country selection and include methods for all countries.

For a standard depreciation method, you can limit the use of the method to a specific legislation. If left blank, the method can be used for all legislations.

In other screens, available methods are filtered by legislation and include methods for all countries.

This field is used to specify the application mode of the rate:

• Rate by annuity: Enter the number of rates (number of annuities) and enter values in the Depreciation rate table which contains the rate to apply for each annuity. The number of annuities is limited to 99. The total of the rates should not exceed 100%.
• Basis x or / Constant Rate: Enter a value for constant rate.
• Base x monthly rate: Enter the number of rates field (number of months) and enter values in the Depreciation rate table which contains the rate to apply to the base for each month. The number of months is limited to 99.

This field is used to specify a value for the constant rate to apply to the depreciation basis.
This field can only be entered if the Rate Application Rule field has the value Basis x Constant Rate or Basis / Constant Rate.

You can only enter the number of rates if the Rate application rule field value is Rate by annuity or Base x monthly rate.

• For Rate by annuity, enter the number of fiscal years over which the depreciation takes place. You can define 1 to 99 annuities.
• For Minimum depreciation duration, the number of annuities cannot be lower than this value.
• If the rate application terms are based on a monthly rate, enter the number of months covered by the depreciation. You can define 1 to 99 monthly payments.
• After entering the number of rates, the depreciation rates table is updated and contains as many lines as annuities or monthly payments to complete.

This field displays a calculated value. It reflects the total of the monthly rates or of the rates by annuity entered in the Depreciation rate table.
If the rate application mode is Rate by annuity and the Depreciation basis type is Balance sheet value - residual value or Balance sheet value, the sum of the entered rates augmented by the exceptional depreciation rate cannot exceed 100%.

Enter the date of the financial asset to determine the amortization start date for each amortization method. By default, it is the purchase date.

This setting is used at the level of the financial asset management:

• During the entry of the method or its filling by associations.
• During the modification of the method by Change of the account posting when this changes the first use of the asset.
• During the modification of the selected date, as long as it can be modified.

This field is used for a non residual method to specify the equivalent residual method.
It is automatically substituted for the original method, in plans for the IAS/IFRS or CRC2002-10 standards, during any change influencing the depreciation of an asset such as change of method, depreciation, or re-evaluation by market value.
The introduction of the residual method is used to process these changes over time by depreciating the new net value for the asset over the duration of the residual depreciation.

• If the method is standard, you cannot enter a residual method. The method displays if it was calculated based on the net value, or with the RE-Residual value if this method was calculated based on the gross value. You can specify the prorata type to apply: days, weeks,or months.
  Special features: For Portuguese standard methods Constantes and Constantes Duodecimos, you can enter the residual method. It may contain the method itself, or the Re-Residual method.
• If the method is free, the residual method is loaded by default with the method itself, but remain modifiable and can be filled with the residual method, whether standard or free.

You can only modified this field only when the equivalent Residual method has the RE - Residual value.
It enables the user to precise the pro rata type to apply (days, weeks or months).

This table is only available if the Rate application rule is Rate by annuity or Basis x monthly rate.
It contains a number of lines equal to the number of annuity or monthly payment entered and enables the user to enter an amortisation rate for each annuity or monthly payment.

If the Rate application rule field is set to Rate by annuity or Base x monthly rate, the table contains as many lines as annuities or monthly payments to enter and you can enter a depreciation rate for each of them.
From the Action icon menu on the line, select Pass to next rates to copy the rate of the selected line to the next line.

Select this checkbox if the acquisition fiscal year must be counted as a full year during the definition of the depreciation end date.

This information is useful when the asset depreciation start date is later than the fiscal year start date.

For example, for an asset acquired on March 1, 2023 and depreciable over a 3-year period:

• If selected, the depreciation end date is December 31, 2025.

• If not selected, the depreciation end date is February 28, 2026.

Select this checkbox if the annuities must be the same as the anniversary date of the asset acquisition.

For example, if the depreciation start date January 7, 2024:

• 1st Annuity rate: 50%

• 2nd Annuity rate: 30%

The rate applied for the second semester of 2024 is 50%, the rate applied for the first semester of 2025 is 50%, and the rate applied for the second semester of 2025 is 30%.

Do not select this checkbox if the annuities must match the specified fiscal years.

Use this field to specify the calculation method of the asset holding duration: in months, days, or weeks.

If the Rate application rule field is Basis x monthly rate, it cannot be modified because the prorata type must be defined in months.

Use this field to select the rule that defines the depreciation start date.

• If the Rate application rule is Basis x monthly tax, the depreciation start date needs to be From first day of the month or From first day of the next month.
• For a monthly type of prorata temporis, the rule used to define the depreciation end date cannot be on the specified day.

Use this field to select the rule that defines the depreciation end date.

• If the Rate application rule is Basis x monthly tax, the depreciation end date needs to be From first day of the month or From first day of the next month.
• For a monthly type of prorata temporis, the rule used to define the depreciation end date cannot be on the specified day.

Use this field to select the rule that defines the issue date.

Use this field to define the amount to be considered as the depreciation basis for calculating depreciations.
The default calculation basis is the balance sheet value minus the residual value.
If it is a free mode used as residual mode by another mode, the basis type must be one of the following values: the net value or the net value minus the residual value.

Select Period distribution or 1st available period.

This field is only available and required if the Depre method type is Free.

Once the asset has been calculated using the selected method, you can no longer change this value.

Period distribution – If you select this method, the depreciation amount is allocated evenly across all periods in the fiscal year.

1st available period – If you select this method, the entire depreciation amount is allocated to a single period in the fiscal year regardless of the start date or issue date. It is allocated to the first available or current period. You cannot allocate this amount to a closed period.

For the Change method actions available for the asset in Fixed assets (GESFAS), the change only applies to the current period when the Distribution rule is 1st available period.

Enter the minimum depreciation duration.
If the method definition is based on a rate by annuity, the number of declared rates must be consistent with the minimum duration entered.

The minimum value is the value below which the charge cannot drop. This impacts the calculation mode for this value.

If the minimum value type selected is Depreciation basis % or Previous FIY end net value %, you need to enter a minimum rate in the next field.

The ceiling value is the maximum amount which the charge value cannot exceed and defines the calculation mode for this value.

If the ceiling value type selected is Depreciation basis % or Previous FIY end net value %, you need to enter a ceiling rate in the next field.

Enter a value between 1 and 100 if the Ceiling value type selected is based on a percentage application.

If the minimum and ceiling value types are identical, the Ceiling rate must be greater than or equal to the Minimum rate.

This field is used to specify the application of a potential exceptional depreciation.
In this case, the rate to apply to the depreciation basis selected must be entered in the next section.

This field must be filled in with a rate (>0) if the Ex. depre. type requires applying a percentage to determine an exceptional charge.

Select this option from the Depreciation Rate table to transfer the selected line rate to the following lines if required.

It is only available if the number of rates is greater than 1.

Some standard amortization methods can include specific options such as:
The available option types are the following:

• Belgian method option available for the DB - Belgian declining and LB - Belgian linear methods.
• Italian method option available for the IT- Ordinary / Anticipated.
• German method option available for the DA - German digressive method. 
  Note: When it is defined, this option is also implicitly applied to the DX- Mixed German digressive method.
• Linear method option available for the LP - French linear method.

This field is only available if an Option type was selected. You can select the option to apply to the amortization method.
The available option codes are the following:

• Without pro rata, Day pro rata and Month pro rata available for the BD - Belgian declining and BL - Belgian linear methods.
• Pro rata of investment financial year and Pro rata of the disinvestment financial year available for the IT- Ordinary / Anticipated method.
• Simplification rule available for the GD - German digressive method. 
  Note: When it is selected, this rule is also implicitly applied to the DX- Mixed German digressive method.
• Priority to the rate available for the LP - French linear method.

Field reserved for an option type not available for the moment.

Field not available.

Field currently unavailable.

Field currently unavailable.

Use this field to indicate the plan in which the option is defined. If the mode has beenwas set up for a specific company, the selection is limited to the plans defined for that company. If not, the selection covers all of the plans.
Plan selection is currently unavailable. The standard mode options are set up for all the plans.

The code for the depreciation plan.

By default, the modes can be applied to all the existing depreciation plans, or all the plans managed by the company if the mode is specific to a company. Except for the IAS/IFRS plan that only some specific modes are allowed.

Disable the plans for which the mode must not be used by clearing the checkbox on the line.