This document is an appendix to the documentation on the setup of Depreciation methods.

In standard, Sage X3 comes with a number of depreciation methods.
Some are associated with a given legislation, while others are common to all legislations.

This document describes the calculation principles of the depreciation methods associated with the Moroccan legislation.

SEEREFERTTO The other methods are described in appendix documentations, which can be accessed from the documentation on the depreciation methods common to all legislations.

DM - Moroccan mixed declining

It is the declining depreciation method applied according to Moroccan rules: this depreciation method thus meets the Moroccan accounting and fiscal standards. 
It is called mixed in so far as the depreciation plan ends in straight-line, like the French declining method.

Depreciation origin

The depreciation origin of thedeclining depreciation is the 1st day of the month entered in the depreciation start date.

Duration

The minimum duration is 3 years and the maximum duration is 10 years.
It must be entered by the user, in years and hundredths of years.

Example: : 6 years 2/3 = 6,66 or 6,67.

Note: :

For this depreciation method, Sage X3 will round to 2 decimals all the durations entered or imported with more than 2 decimals. Ditto for residual durations calculated in the framework of intra-group sales.

Rate

The rate that can be applied cannot be determined by section associations; i is automatically determined by multiplying the straight-line depreciation rate corresponding to the depreciation duration with the coefficient that varies according to this duration.

This variable coefficient, called digressivity factor, takes the following values:

  • Duration of 3 or 4 years --> Coefficient = 1.5
  • Duration of 5 or 6 years --> Coefficient = 2
  • Duration > 6 years --> Coefficient = 3 

Examples :

 Depreciation duration

 Coefficient

 Straight-line rate

 Declining rate

 3 years

 1.5

 0.3333

 50%

 4 years

 1.5

 0.25

 37.50%

 5 years

 2

 0.2

 40%

 6 years

 2

 0.1667

 33.33%

 7 years

 3

 0.1429

 42.86%

 8 years

 3

 0.125

 37.50%

 9 years

 3

0.1111

 33.33%

 10 years

 3

 0.1

 30%

Depreciation end date

Depreciation end date = 1st day of the month of the depreciation start date + depreciation duration in months.
This leads to a depreciation end set at the end of the month.

Prorata temporis

The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:

  • During the acquisition fiscal year, if the depreciation originis not the 1st day of the fiscal year.

  • If the duration of a fiscal year differs from 12 months.
     
  • During the disinvestment fiscal year: the charge is calculated until the last day of the month entered in the disposal date. This rule can be modified by Disposal rules: Disposal at the end of the previous FY and Disposal at the end of the current FY.

Depreciation charges

Except for the last depreciation fiscal year, the fiscal year charge is equal to:

Net depreciable value at fiscal year start * digressivity factor * prorata temporis (number of holding months / 12)

The number of holding months will be different from 12 in the following situations:
 - The Depreciation start date is beyond the fiscal year start date
- The fiscal year Duration differs from 12 months
- The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date]

The depreciation expenditure of the last fiscal year equals:
 Net depreciable value at fiscal year start * prorata temporis (number of holding months / number of months remaining to be depreciated) (2)

(1) The last fiscal year is that in which the Depreciation end date is to be found.
(2) A prorata temporis will be applied only if the asset is issued before the depreciation end date.

If the depreciation end date is earlier than or equal to the fiscal year end date, the fiscal year charge will automatically be loaded with the net depreciable value, so as to close the depreciation.

Notes: :
- Depreciable value = Gross value – Residual value
- Net depreciable value = Net value – Residual value