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 Portuguese 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.

DP - Portuguese declining

You can force the depreciation end date using the Method change function (FASMTC) or the Depreciation method change function (FASMTCM) for a mass modification.

Depreciation origin

The declining depreciation origin is the first day of the month entered in the depreciation start date.

Duration

It is necessarily longer than or equal to 3 years and must be specified by the user, in years and hundredths of years.

Example:  6 years 2/3 = 6.66 or 6.67.

..\FCT\SEEINFO For this depreciation method, Sage X3 rounds 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.

Declining depreciation rate

The applicable rate for the calculation of the declining depreciation cannot be entered, nor determined by section associations.
It is automatically determined by Sage X3 by multiplying the straight-line depreciation rate corresponding to the standard use duration of the fixed asset by a coefficient.

This coefficient, called digressivity factor, varies according to the depreciation duration:

  • Duration = 3 years and < 5 years --> Coefficient = 1.5
  • Duration = 5 years and = 6 years --> Coefficient = 2
  • Duration > 6 years --> Coefficient = 2.5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration

Declining rate

3 years

(1 / 3) * 1.5 = 50%

4 years

(1 / 4) * 1.5 = 37.50%

5 years

(1 / 5) * 2 = 40%

6 years

(1 / 6) * 2 = 33.33%

6.66 or 6.67

(1 / 6.666666) * 2.5 = 37.50%

7 years

(1 / 7) * 2.5 = 35.71%

8 years

(1 / 8) * 2.5 = 31.25%

10 years

(1 / 10) * 2.5 = 25%

12 years

(1 / 12) * 2.5 = 20.83%

15 years

(1 / 15) * 2.5 = 16.67%

20 years

(1 / 20) * 2.5 = 12.5%

Depreciation end date

It is determined as follows:  

1st day of the month of the Depreciation start date + Depreciation duration converted in months.
Therefore, the depreciation end date corresponds to the last day of a month.

Example 1:

Depreciation start date = 05/12/2005
Duration = 3 years
Depreciation end date = 30/11/2008

Example 2: 

Depreciation start date = 05/11/2005
Duration = 5 years
Depreciation end date = 31/10/2010

Example 3: 

Depreciation start date = 05/02/2005
Duration = 6.66 years
Depreciation end date = 30/09/2011

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 fiscal year start date is not the 1st day of a month, the 1st day of the month is used as the fiscal year start date.

  • If the duration of a fiscal year differs from 12 months.
     
  • During the disinvestment fiscal year: the charge is calculated until the end of the month preceding the asset disposal month, or up to the end of the asset disposal month if this date corresponds to the last day of a month. 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 charge

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

Depreciation value * rate * 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 charge of the last fiscal year is equal to:

 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 the one of the Depreciation end date.

(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 start 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

Distribution of the fiscal year charge on the periods

If the fiscal year is divided into several periods, the fiscal year charge is distributed on these periods as follows:

Period Charge pc =   
Fiscal year charge
*
( Σ p1 to pc ( (Period weight / Number of months in the period) * Number of holding months in the period )
/
Σ p1 to pf ( (Period weight / Number of months in the period) * Number of holding months in the period ) )
-
Depreciation total of previous periods

p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)

p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. The period retained is thus the minimum period among the 3 following ones:
- period of depreciation end if the Depreciation end date belongs to the interval [period start – period end] 
- disposal period if the Disposal date belongs to the interval [period start – period end]
- current period

Examples:

1st example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 05/11/2005
  •  Depreciation duration: 5 years, Rate: 40%
  • Specificity: the second fiscal year has a duration of 6 months
  • Depreciation end date: 31/10/2010

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 666.67

666.67

01/01/2006 – 30/06/2006

9,333.33

(2) 1,866.67

2,533.34

01/07/2006 – 30/06/2007

7,466.66

2,986.66

5,520.00

01/07/2007 – 30/06/2008

4,480.00

1,792.00

7,312.00

01/07/2008 – 30/06/2009

2,688.00

1,075.20

8,387.20

01/07/2009 – 30/06/2010

1,612.80

645.12

9,032.32

01/07/2010 – 30/06/2011

967.68

(3) 967.68

10,000.00

(1) 10,000.00 * 40% * 2/12 since the asset is held for only 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 since the duration of this 2nd fiscal year is 6 months.

(3) Depreciation charge = Net value of fiscal year start since the depreciation end date is in that fiscal year.

2nd example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 05/11/2005
  •  Depreciation duration: 5 years, Rate: 40%
  • Specificity: the second fiscal year has a duration of 6 months
  • Depreciation end date: 31/10/2010
  • Asset disposal date: 03/09/2010

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 666.67

666.67

01/01/2006 – 30/06/2006

9,333.33

(2) 1,866.67

2,533.34

01/07/2006 – 30/06/2007

7,466.66

2,986.66

5,520.00

01/07/2007 – 30/06/2008

4,480.00

1,792.00

7,312.00

01/07/2008 – 30/06/2009

2,688.00

1,075.20

8,387.20

01/07/2009 – 30/06/2010

1,612.80

645.12

9,032.32

01/07/2010 – 30/06/2011

967.68

(3) 483.84

9,516.16

(1) 10,000.00 * 40% * 2/12 since the asset is held for only 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 since the duration of this 2nd fiscal year is 6 months.

(3) 967.68 * 2/4 since the asset is held for 2 months, while the residual depreciation duration is 4 months.

Distribution of the fiscal year 2011 depreciation charge, based on the period weight:

Period

Number of months / Weight

Number of holding months

Depreciation charge

01/07/2010 – 30/09/2010

03 / 03

02

(4) 483.84

01/10/2010 – 31/12/2010

03 / 03

0

0.00

01/01/2011 – 31/03/2011

03 / 03

0

0.00

01/04/2011 – 30/06/2011

03 / 03

0

0.00

Fiscal year 2011 total

483.84

(4)  483.84 * (03 / 03 * 02) / [ (03 / 03 * 02) + (03 / 03 * 0) + (03 / 03 * 0) + (03 / 03 * 0) ] = 483.84

DV - Portuguese mixed declining

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

Depreciation origin

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

Duration

It is necessarily longer than or equal to 3 years and must be specified by the user, in years and hundredths of years.

Example:  6 years 2/3 = 6.66 or 6.67.

..\FCT\SEEINFO For this depreciation method, Sage X3 rounds 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.

Declining depreciation rate

The applicable rate for the calculation of the declining depreciation cannot be entered, nor determined by section associations.
It is automatically determined by Sage X3 by multiplying the straight-line depreciation rate corresponding to the standard use duration of the fixed asset by a coefficient.

This coefficient, called digressivity factor, varies according to the depreciation duration:

  • Duration = 3 years and < 5 years --> Coefficient = 1.5
  • Duration = 5 years and = 6 years --> Coefficient = 2
  • Duration > 6 years --> Coefficient = 2.5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration

Declining rate

3 years

(1 / 3) * 1.5 = 50%

4 years

(1 / 4) * 1.5 = 37.50%

5 years

(1 / 5) * 2 = 40%

6 years

(1 / 6) * 2 = 33.33%

6.66 or 6.67

(1 / 6.666666) * 2.5 = 37.50%

7 years

(1 / 7) * 2.5 = 35.71%

8 years

(1 / 8) * 2.5 = 31.25%

10 years

(1 / 10) * 2.5 = 25%

12 years

(1 / 12) * 2.5 = 20.83%

15 years

(1 / 15) * 2.5 = 16.67%

20 years

(1 / 20) * 2.5 = 12.5%

Depreciation end date

It is determined as follows:  

1st day of the month of the Depreciation start date + Depreciation duration converted in months.
Therefore, the depreciation end date corresponds to the last day of a month.

Example 1:

Depreciation start date = 05/12/2005
Duration = 3 years
Depreciation end date = 30/11/2008

Example 2: 

Depreciation start date = 05/11/2005

Duration = 5 years

Depreciation end date = 31/10/2010

Example 3: 

Depreciation start date = 05/02/2005

Duration = 6.66 years

Depreciation end date = 30/09/2011

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 origin is not the first day of the fiscal year.
    If the fiscal year start date is not the 1st day of a month, the 1st day of the month is used as the fiscal year start date.

  • If the duration of a fiscal year differs from 12 months.

  • During the disinvestment fiscal year: the charge is calculated until the end of the month preceding the asset disposal month, or up to the end of the asset disposal month if this date corresponds to the last day of a month. 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 charge

  • The depreciation charge of the 1st fiscal year is equal to:
    Depreciation value * rate * 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 charge of the next fiscal years is equal to:
    - Either:  Net depreciable value at fiscal year start * rate * prorata temporis (number of holding months / 12)
    - Or: Net depreciable value at fiscal year start * (Number of holding months in the fiscal year / Number of months remaining to be depreciated from the beginning of the fiscal year)
    if the result of this calculation is larger than:
    Net depreciable value at fiscal year start * rate * prorata temporis (number of holding months / 12)
     
    The number of holding months will be different from 12 in the following situations:
    - 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]
     
    If the depreciation end date is earlier than or equal to the fiscal year end date, the fiscal year charge is automatically 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

Distribution of the fiscal year charge on the periods

If the fiscal year is divided into several periods, the fiscal year charge is distributed on these periods as follows:

Period Charge pc =   
Fiscal year charge
*
( Σ p1 to pc ( (Period weight / Number of months in the period) * Number of holding months in the period )
/
Σ p1 to pf ( (Period weight / Number of months in the period) * Number of holding months in the period ) )
-
Depreciation total of previous periods

 p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)
p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. The period retained is thus the minimum period among the 3 following ones:
- period of depreciation end if the Depreciation end date belongs to the interval [period start – period end] 
- disposal period if the Disposal date belongs to the interval [period start – period end]
- current period

Examples:

1st example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 05/11/2005
  •  Depreciation duration: 5 years, Rate: 40%
  • Specificity: the second fiscal year has a duration of 6 months
  • Depreciation end date: 31/10/2010

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 666.67

666.67

01/01/2006 – 30/06/2006

9,333.33

(2) 1,866.67

2,533.34

01/07/2006 – 30/06/2007

7,466.66

2,986.66

5,520.00

01/07/2007 – 30/06/2008

4,480.00

1,792.00

7,312.00

01/07/2008 – 30/06/2009

2,688.00

(3) 1,152.00

8,464.00

01/07/2009 – 30/06/2010

1,536.00

1,152.00

9,616.00

01/07/2010 – 30/06/2011

384.00

384.00

10,000.00

(1) 10,000.00 * 40% * 2/12 since the asset is held for only 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 since the duration of this 2nd fiscal year is 6 months.

(3) 2,688.00 * 12 months / 28 months = 1,152.00 > 2,688.00 * 40% = 1 075.00

2nd example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 05/11/2005
  •  Depreciation duration: 5 years, Rate: 40%
  • Specificity: the second fiscal year has a duration of 6 months
  • Depreciation end date: 31/10/2010
  • Asset disposal date: 31/12/2008

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 666.67

666.67

01/01/2006 – 30/06/2006

9,333.33

(2) 1,866.67

2,533.34

01/07/2006 – 30/06/2007

7,466.66

2,986.66

5,520.00

01/07/2007 – 30/06/2008

4,480.00

1,792.00

7,312.00

01/07/2008 – 30/06/2009

2,688.00

(3) 576.00

7,888.00

(1) 10,000.00 * 40% * 2/12 since the asset is held for only 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 since the duration of this 2nd fiscal year is 6 months.

(3) 2,688,00 * 6 months / 28 months = 576.00 > 2,688.00 * 40% * 6/12 = 537.60

3rd example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 05/12/2005
  •  Depreciation duration: 3 years, Rate: 50%
  • Depreciation end date: 31/11/2008

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 416.67

416.67

01/01/2006 – 31/12/2006

9,583.33

(2) 4,791.67

5,208.34

01/01/2007 – 31/12/2007

4,791.66

(3) 2,500.00

7,708.34

01/01/2008 – 31/12/2008

2,291.66

2,291.66

10,000.00

(1) 10,000.00 * 50% * 1/12 since the asset is held for only 1 months during this 1st fiscal year.

(2) 9,583.33 * 50%

(3) 4,791.66 * 12 months / 23 months = 2,500.00 > 4,791.66 * 50% = 2,395.83

Distribution of the fiscal year 2008 depreciation charge, based on the period weight:

Period

Number of months / Weight

Number of holding months

Depreciation charge

01/01/2008 – 31/03/2008

03 / 03

03

(4) 687.50

01/04/2008 – 30/06/2008

03 / 03

03

(5) 687.50

01/07/2008 – 30/09/2008

03 / 02

03

(6) 458.33

10/1/2008 – 31/12/2008

03 / 03

02

(7) 458.33

Fiscal year 2008 total

2,291.66

(4) 2,291.66 * (03 / 03 * 03) / [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 687.50

(5) 2,291.66 * [ (03 / 03 * 03) + (03 / 03 * 03) ] 

/ [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 1,375.00 – 687.50 = 687.50
(6) 2,291.66 * [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03)] 
           / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 1,833.33 – 1,375.00 = 458.33
(7) 2,291.66 * [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ]

/ [ (03  / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 2,291.66 – 1,833.33 = 458.33

PC - Portuguese constants

You can force the depreciation end date using the Method change function (FASMTC) or the Depreciation method change function (FASMTCM) for a mass modification.

Depreciation origin

The depreciation origin depends on the Specific rule entered in the depreciation plan:
- Based on Period (default value)
- Based on FY

  • If the specific rule is Based on Period, the depreciation origin depends on the Depreciation start date:
    - either the day of the Depreciation start date if it is the 1st day of a month,
    - or else, the 1st day of the month that follows the month of the Depreciation start date.
  • If the specific rule is Base on FY, the depreciation origin is the 1st day of the fiscal year that follows the acquisition fiscal year.

Duration

With this depreciation method, it is usually the depreciation rate that is specified. Nevertheless, it is possible to specify the duration; if it is, it should be entered in years and hundredths of years.

Depreciation rate

It is generally entered by the user with up to 4 decimals(example: 33.3333%). 
If the depreciation rate is specified, Sage X3 determines the depreciation duration in years and hundredths of years.

If the depreciation duration is specified, Sage X3 automatically determines the rate.

Depreciation end date

It is determined as follows:

Depreciation start date + depreciation duration

 The depreciation start date to take into account is the depreciation origin determined according to the specific rule selected: Based on Period or Based on FY

Since the depreciation start date is necessarily the 1st day of a month, the depreciation end date will be the last day of a month.

 Examples of calculations of depreciation end date:

Start date

Rate / Duration

End date

01/10/2005

0.1428 / 7 years

30/09/2012

01/01/2005

0.1428 / 7 years

31/12/2011

01/11/2005

0.3003 / 3.33

28/02/2009

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 origin is not the 1st day of the fiscal year.
  •  If the fiscal year duration differs from 1 year.
  • During the disinvestment fiscal year:

o If the specific rule is Based on Period, the charge is calculated until the end of the month specified in the disposal date.

o If the specific rule is Based on FY, a complete charge is calculated: the charge of the disposal period (1) is equal to Fiscal year charge – Depreciation total of closed periods.

This calculation mode can be modified by Disposal rules: Disposal at the end of the previous FY and Disposal at the end of the current FY. 

(1) The disposal period is either the period of the Disposal date, or the period in which the disposal is recorded. The 2nd situation is in the case of a retroactive disposal.

Depreciation charge

The fiscal year charge is calculated as follows:

Depreciable value * Depreciation rate * prorata temporis in months (1)

If the asset is not issued before the depreciation end date (Disposal date (2) not specified or > Depreciation end date), the charge of the last depreciation fiscal year is equal to the Net value depreciable.
The last fiscal year is detected if Depreciation end date Î [Fiscal year start date – Fiscal year end date].

 (1) Prorata temporis = ( Number of holding months in the fiscal year / 12 )

Number of holding months in the fiscal year = Number of months in the period [ max (depreciation start date, fiscal year start date) - min (depreciation end date, disposal date (2), fiscal year end date) ]

(2) If the specific rule is Based on Period, the date taken into account is the effective disposal date, that is the last day of the month of the disposal date. 
If the specific rule is Based on FY, the disposal date should not be taken into account since a complete charge must be calculated for the fiscal year of disinvestment.

Notes:

Depreciable value = Gross value – Residual value

Net depreciable value = Net value – Residual value

Distribution of the fiscal year charge on the periods

If the fiscal year is divided into several periods, the fiscal year charge is distributed on these periods as follows:

  • Charge of Period p = Depreciable value * Depreciation rate *

 ( number of months in the period [ max (depreciation start date, fiscal year start date) – min (depreciation end date, disposal date (3), end date of period p) ] / 12 )
- Depreciation total of previous periods
 (3) 
- If the specific rule is Based on Period, the date taken into account is the effective disposal date, that is the last day of the month of the disposal date.
- If the specific rule is Basd on FY, the charge of the disposal period (4) is calculated as follows:
                Fiscal year charge – Depreciation total of closed periods
  
(4) The disposal period is either the period of the disposal date, or the period in which the disposal is recorded. The 2nd situation is in the case of a retroactive disposal.

  • In the last depreciation period, the charge is equal to:

         Fiscal year charge – Depreciation total of previous periods
 

..\FCT\SEEINFO To comply with the calculation terms pertaining to this depreciation method, each period of the fiscal year must be equal to 1 month or a whole number of months. Sage X3 does not check the conformity of this definition; it relies on the existing definition and therefore on the number of months in each period defined.

Examples:

1st example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 01/11/2005
  •  Rate: 14.28% --> Depreciation duation: 7 years --> Depreciation end date: 31/10/2012
  • Specific rule: Based on Period
     

    Fiscal year

    Net depreciable value

    Fiscal year charge

    Fiscal year total

    01/01/2005 – 31/12/2005

    10,000.00

    (1) 238.00

    238.00

    01/01/2006 – 31/12/2006

    9,762.00

    (2) 1,428.00

    1,666.00

    01/01/2007 – 31/12/2007

    8,334.00

    (2) 1,428.00

    3,094.00

    01/01/2008 – 31/12/2008

    6,906.00

    (2) 1,428.00

    4,522.00

    01/01/2009 – 31/12/2009

    5,478.00

    (2) 1,428.00

    5,950.00

    01/01/2010 – 31/12/2010

    4,050.00

    (2) 1,428.00

    7,378.00

    01/01/2011 – 31/12/2011

    2,622.00

    (2) 1,428.00

    8,806.00

    01/01/2012 – 31/12/2012

    1,194.00

    (3) 1,194.00

    10,000.00

    (1) (10,000.00 * 14.28%) * 2 / 12 = 238

    (2) (10,000.00 * 14.28%) * 12/12 = 1,428

    (3) 10,000.00 – 8,806.00 = 1,194.00 since the depreciation end date (31/10/2012) is in this fiscal year.

    Distribution of the fiscal year 2005 charge:

    Period

    Period expired 

    Previous periods depreciation total

    Period charge

    01/11/2005 – 30/11/2005

    1 / 12

    0.00

    (1) 119.00

    01/12/2005 – 31/12/2005

    2 / 12

    119.00

    (2) 119.00

    Fiscal year 2005 total

    238.00

     Distribution of the fiscal year 2012 charge:

    Period

    Period expired

    Previous periods depreciation total

    Period charge

    01/01/2012 – 31/01/2012

    1 / 12

    0.00

    (1) 119.00

    01/02/2012 – 29/02/2012

    2 / 12

    119.00

    (2) 119.00

    01/03/2012 – 31/03/2012

    3 / 12

    238.00

    119.00

    01/04/2012 – 30/04/2012

    4 / 12

    357.00

    119.00

    01/05/2012 – 31/05/2012

    5 / 12

    476.00

    119.00

    01/06/2012 – 30/06/2012

    6 / 12

    595.00

    119.00

    01/07/2012 – 31/07/2012

    7 / 12

    714.00

    119.00

    01/08/2012 – 31/08/2012

    8 / 12

    833.00

    119.00

    01/09/2012 – 30/09/2012

    9 / 12

    952.00

    119.00

    01/10/2012 – 31/10/2012

     

    1,071.00

    (3) 123.00

    Fiscal year 2005 total

    1,194.00

    (1) (10,000.00 * 14.28%) * 1/12 – 0 = 119.00

    (2) (10,000.00 * 14.28%) * 2/12 – 119.00 = 119.00

    (3) 1,194.00 – 1,071.00 = 123.00 since the depreciation end date (31/10/2012) is in this period [01/10/2012 – 31/10/2012]

2nd example

  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 01/12/2005
  •  Rate: 30.03 % --> Depreciation duration: 3.33 years --> Depreciation end date: 31/03/2009
  • Specific rule: Based on Period
  • Specificities: the asset is issued on 25/02/2009 - -> Effective disposal date: 28/02/2009

Fiscal year

Net depreciable value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 250.25

250.25

01/01/2006 – 31/12/2006

9,749.75

(2) 3,003.00

3,253.25

01/01/2007 – 31/12/2007

6,746.75

(2) 3,003.00

6,256.25

01/01/2008 – 31/12/2008

3,743.75

(2) 3,003.00

9,259.25

01/01/2009 – 31/12/2009

740.75

(3) 493.83

9,753.08

(1) (10,000.00 * 30.03%) * 1 / 12 = 250.25

(2) (10,000.00 * 30.03%) * 12 / 12 = 3,003.00

(3) 740.75 * 2/3 = 493.83 because the depreciation end date is 31/03/2009 and the asset is issued on 28/02/2009

Distribution of the fiscal year 2009 charge:

Period

Period expired

Previous periods depreciation total

Period charge

01/01/2009 – 31/01/2009

1 / 12

0.00

250.25

01/02/2009 – 28/02/2009

2 / 12

250.25

250.25

01/03/2009 – 31/03/2009

3 / 12

500.50

0.00

Fiscal year 2009 total

500.50
 3rd example
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 01/07/2005
  •  Rate: 33.3333 % --> Depreciation duration: 3 years --> Depreciation end date: 30/06/2008
  • Specific rule: Based on Period
  • Particularities: the asset is recorded while the period 07/2005 has already been closed.

Fiscal year

Net depreciable value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 1,666.67

1,666.67

01/01/2006 – 31/12/2006

8,333.33

(2) 3,333.33

5,000.00

01/01/2007 – 31/12/2007

5,000.00

(2) 3,333.33

8,333.33

01/01/2008 – 31/12/2008

1,666.67

(3) 1,666.67

10,000.00

(1) (10,000.00 * 33.3333%) * 6 / 12 = 1,666.67

(2) (10,000.00 * 33.3333%) * 12 / 12 = 3,333.33

(3) (10,000.00 – 8,333.33) = 1,666.67 since the depreciation end date (30/06/2008) is in this fiscal year.

Distribution of the fiscal year 2005 charge:

Period

Period expired

Previous periods depreciation total

Period charge

01/01/2005 – 31/01/2005

 

0.00

0.00

01/02/2005 – 28/02/2005

 

0.00

0.00

01/03/2005 – 31/03/2005

 

0.00

0.00

01/04/2005 – 30/04/2005

 

0.00

0.00

01/05/2005 – 31/05/2005

 

0.00

0.00

01/06/2005 – 30/06/2005

 

0.00

0.00

01/07/2005 – 31/07/2005

1 / 12

0.00

0.00

01/08/2005 – 31/08/2005

2 / 12

(4) 0.00

(4) 555.55

01/09/2005 – 30/09/2005

3 / 12

555.55

277.78

01/10/2005 – 31/10/2005

4 / 12

833.33

277.78

01/11/2005 – 30/11/2005

5 / 12

1,111.11

277.78

01/12/2005 – 31/12/2005

6 / 12

1,388.89

277.78

Fiscal year 2005 total

1,666.67

(4) The depreciation start date is 01/07/2005, but the asset was recorded in the period [01/08/2005 – 31/08/2005]; the charge for this period therefore contains the adjustment of the previous period.

4th example 
  • Gross value: 120,000
  • Residual value: 0
  •  Depreciation start date: 01/07/2004
  •  Rate: 14.28% --> Depreciation duration: 7 years --> Depreciation end date: 31/12/2011
  • Specific rule: Based on FY

Fiscal year

Net depreciable value

Fiscal year charge

Fiscal year total

01/01/2004 – 31/12/2004

120,000.00

(1) 0.00

0.00

01/01/2005 – 31/12/2005

120,000.00

(2) 17,136.00

17,136.00

01/01/2006 – 31/12/2006

102,864.00

(2) 17,136.00

34,272.00

01/01/2007 – 31/12/2007

85,728.00

(2) 17,136.00

51,408.00

01/01/2008 – 31/12/2008

68,592.00

(2) 17,136.00

68,544.00

01/01/2009 – 31/12/2009

51,456.00

(2) 17,136.00

85,680.00

01/01/2010 – 31/12/2010

34,320.00

(2) 17,136.00

102,816.00

01/01/2011 – 31/12/2011

17,184.00

(3) 17,184.00

120,000.00

(1) specific rule = "Based on FY" implies no charge for the acquisition fiscal year

(2) 120,000 * 14.28% * 12 / 12 = 17,136.00

(3) (120,000.00 – 102,816.00) = 17,184.00 since the depreciation end date (31/12/2011) is in this fiscal year.

Distribution of the fiscal year 2005 charge in the case where the asset is issued on 15/05/2005, while the current period is [01/05/2005 – 31/05/2005]

Period

Previous periods depreciation total

Period charge

01/01/2005 – 31/01/2005

 

1,428.00

01/02/2005 – 28/02/2005

1,428.00

1,428.00

01/03/2005 – 31/03/2005

2,856.00

1,428.00

01/04/2005 – 30/04/2005

4,284.00

1,428.00

01/05/2005 – 31/05/2005

5,712.00

(4) 11,424.00

01/06/2005 – 30/06/2005

17,136.00

0.00

…

17,136.00

0.00

Fiscal year 2005 total

17,136.00

 (4) 17.136,00 - 5.712,00 = 11.424,00 because the asset was issued in 05/2005, and so the complete charge of the fiscal year is closed in this current period.

..\FCT\SEEINFO If the asset had been issued retroactively (Disposal date < Start date of current period), the approach and the result would be identical.

Distribution of the fiscal year 2011 charge, in the case where the asset is not issued before the depreciation end date:

Period

Previous periods depreciation total

Period charge

01/01/2011 – 31/01/2011

 

(1) 1,428.00

01/02/2011 – 28/02/2011

1,428.00

(2) 1,428.00

01/03/2011 – 31/03/2011

2,856.00

1,428.00

01/04/2011 – 30/04/2011

4,284.00

1,428.00

01/05/2011 – 31/05/2011

5,712.00

1,428.00

01/06/2011 – 30/06/2011

7,140.00

1,428.00

01/07/2011 – 31/07/2011

8,568.00

1,428.00

01/08/2011 – 31/08/2011

9,996.00

1,428.00

01/09/2011 – 30/09/2011

11,424.00

1,428.00

01/10/2011 – 31/10/2011

12,852.00

1,428.00

01/11/2011 – 30/11/2011

14,280.00

1,428.00

01/12/2011 – 31/12/2011

15,708.00

(3) 1,476.00

Fiscal year 2011 total

17,184.00

(1) (120,000 * 14.28% * 1/12) = 1,428.00

(2) (120,000 * 14.28% * 2/12) – 1,428.00 = 1,428.00

(3) 17,184.00 – 15,708.00 = 1,476.00

PD - Portuguese duodecimos

It is a straight-line depreciation method used in Portugal.

Depreciation origin

It is systematically equal to the 1st day of the month specified as depreciation start date, whether the Specific rule selected is:

  • Based on Period (default value)
     
    or
  • Based on FY

Duration

With this depreciation method, it is usually the depreciation rate that is specified. Nevertheless, it is possible to specify the duration; if it is, it should be entered in years and hundredths of years.

Depreciation rate

It is generally entered by the user with up to 4 decimals(example: 33.3333%). 
If the depreciation rate is specified, Sage X3 determines the depreciation duration in years and hundredths of years.

If the depreciation duration is specified, Sage X3 automatically determines the rate.

Depreciation end date

It is determined as follows:

Depreciation start date + depreciation duration

Since the depreciation start date is necessarily the 1st day of a month, the depreciation end date will be the last day of a month.

Examples of calculations of depreciation end date:

Start date

Rate / Duration

End date

01/10/2005

0.1428 / 7 years

30/09/2012

01/01/2005

0.1428 / 7 years

31/12/2011

01/11/2005

0.3003 / 3.33

28/02/2009

Prorata temporis

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 start date is not the 1st day of the fiscal year, provided the Specific rule selected is Based on Period.
  • If the fiscal year duration differs from 1 year.
  •  During the disinvestment fiscal year:  
     
    - If the specific rule is Based on Period, the charge is calculated until the disposal date if this corresponds to the last day of a month; otherwise, the charge is calculated until the end of the month that precedes the disposal date.
     
    - If the specific rule is Based on FY, the charge of the disposal fiscal year is equal to 0: the charge of the current period ("current" at the time of the recording of the disposal) is equal to: Fiscal year charge – Depreciation total of closed periods.

This calculation mode can be modified by Disposal rules: Disposal at the end of the previous FY and Disposal at the end of the current FY.

Depreciation charge

The fiscal year charge is calculated as follows:

Depreciable value * Depreciation rate * prorata temporis in months (1)

If the asset is not issued before the depreciation end date (Disposal date (2) not specified or > Depreciation end date), the charge of the last depreciation fiscal year is equal to the Net value depreciable.

(1) Prorata temporis = ( Number of holding months in the fiscal year / 12 )

Number of holding months in the fiscal year = Number of months in the period [ max (3) (depreciation start date, fiscal year start date) – min (depreciation end date, disposal date (2), fiscal year end date) ]

(2) If the specific rule is Based on FY, the charge of the disposal fiscal year is 0.
If the specific rule is Based on Period, the disposal date taken into account is:

  • either the disposal date specified by the user, if corresponds to the last day of a month
  • or the last day of the month that precedes the disposal date

 (3) If the specific rule is Based on FY, for the acquisition fiscal year, the Fiscal year start date is taken into account rather than the Depreciation start date, since the charge of this fiscal year is complete.

Notes:

Depreciable value = Gross value – Residual value
Net depreciable value = Net value – Residual value

Distribution of the fiscal year charge on the periods

If the fiscal year is divided into several periods, the fiscal year charge is distributed on these periods as follows:

  • Charge of Period p = Depreciable value * Depreciation rate
    * ( number of months in the period [ max (depreciation start date, fiscal year start date) – min (depreciation end date, disposal date, end date of period p) ] / 12 (1) )
    - Depreciation total of previous periods

(1) In the case where the Specific rule is Based on FY, the value retained for he 1st fiscal year is not 12 but: Number of months in the period [ Depreciation start date – Fiscal year end date]

  • In the last depreciation period, the charge is equal to:
     Fiscal year charge – Depreciation total of previous periods

..\FCT\SEEINFO To comply with the calculation terms pertaining to this depreciation method, each period of the fiscal year must be equal to 1 month or a whole number of months. Sage X3 does not check the conformity of this definition; it relies on the existing definition and therefore on the number of months in each period defined.

Examples:

1st example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 01/11/2005
  •  Rate: 14.28% --> Depreciation duration: 7 years --> Depreciation end date: 10/31/2012
  • Specific rule: Based on Period

    Fiscal year

    Net depreciable value

    Fiscal year charge

    Fiscal year total

    01/01/2005 – 31/12/2005

    10,000.00

    (1) 238.00

    238.00

    01/01/2006 – 31/12/2006

    9,762.00

    (2) 1,428.00

    1,666.00

    01/01/2007 – 31/12/2007

    8,334.00

    (2) 1,428.00

    3,094.00

    01/01/2008 – 31/12/2008

    6,906.00

    (2) 1,428.00

    4,522.00

    01/01/2009 – 31/12/2009

    5,478.00

    (2) 1,428.00

    5,950.00

    01/01/2010 – 31/12/2010

    4,050.00

    (2) 1,428.00

    7,378.00

    01/01/2011 – 31/12/2011

    2,622.00

    (2) 1,428.00

    8,806.00

    01/01/2012 – 31/12/2012

    1,194.00

    (3) 1,194.00

    10,000.00

    (1) (10,000.00 * 14.28%) * 2 / 12 = 238

    (2) (10,000.00 * 14.28%) * 12 / 12 = 1,428

    (3) 10,000.00 – 8,806.00 = 1,194.00 since the depreciation end date (31/10/2012) is in this fiscal year.

Distribution of the fiscal year 2005 charge:

Period

Period expired

Previous periods depreciation total

Period charge

01/11/2005 – 30/11/2005

1 / 12

0.00

(1) 119.00

12/1/2005 – 31/12/2005

2 / 12

119.00

(2) 119.00

Fiscal year 2005 total

238.00

 Distribution of the fiscal year 2012 charge:

Period

Period
expired

Previous periods depreciation total

Period charge

01/01/2012 – 31/01/2012

1 / 12

0.00

(1) 119.00

01/02/2012 – 29/02/2012

2 / 12

119.00

(2) 119.00

01/03/2012 – 31/03/2012

3 / 12

238.00

119.00

01/04/2012 – 30/04/2012

4 / 12

357.00

119.00

01/05/2012 – 31/05/2012

5 / 12

476.00

119.00

01/06/2012 – 30/06/2012

6 / 12

595.00

119.00

01/07/2012 – 31/07/2012

7 / 12

714.00

119.00

01/08/2012 – 31/08/2012

8 / 12

833.00

119.00

01/09/2012 – 30/09/2012

9 / 12

952.00

119.00

01/10/2012 – 31/10/2012

 

1,071.00

(3) 123.00

Fiscal year 2005 total

1,194.00

(1) (10,000.00 * 14.28%) * 1/12 – 0 = 119.00

(2) (10,000.00 * 14.28%) * 2/12 – 119.00 = 119.00

(3) 1,194.00 – 1,071.00 = 123.00 since the depreciation end date (31/10/2012) is in this period [01/10/2012 – 31/10/2012]

2nd example 
  • Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 01/12/2005
  •  Rate: 30.03% --> Depreciation duration: 3.33 years --> Depreciation end date: 31/03/2009
  • Specific rule: Based on Period
  • Specificities: the asset is issued on 25/02/2009 - -> "Effective "disposal date: 31/01/2009

Fiscal year

Net depreciable value

Fiscal year charge

Fiscal year total

01/01/2005 – 31/12/2005

10,000.00

(1) 250.25

250.25

01/01/2006 – 31/12/2006

9,749.75

(2) 3,003.00

3,253.25

01/01/2007 – 31/12/2007

6,746.75

(2) 3,003.00

6,256.25

01/01/2008 – 31/12/2008

3,743.75

(2) 3,003.00

9,259.25

01/01/2009 – 31/12/2009

740.75

(3) 246.92

9,506.17

(1) (10,000.00 * 30.03%) * 1 / 12 = 250.5

(2) (10,000.00 * 30.03%) * 12 / 12 = 3,003.00

(3) 740.75 * 1/3 = 246.92 since the effective disposal date is 31/01/2009 and the end date of depreciation is on 03/31/2009: it retains therefore 1 months of depreciation on the residual 3 months.

Distribution of the fiscal year 2009 charge:

Period

Period
expired

Previous periods depreciation total

Period charge

01/01/2009 – 31/01/2009

1 / 12

0.00

246.92

01/02/2009 – 28/02/2009

2 / 12

246.92

0.00

…

 

246.92

0.00

Fiscal year 2009 total

246.92
 3rd example 

  • Gross value: 120,000
  • Residual value: 0
  •  Depreciation start date: 01/07/2004
  • Rate: 14.28% --> Depreciation duration: 7 years --> Depreciation end date: 31/12/2010
  • Specific rule: Based on FY

Fiscal year

Net depreciable value

Fiscal year charge

Fiscal year total

01/01/2004 – 31/12/2004

120,000.00

(1) 17,136.00

17,136.00

01/01/2005 – 31/12/2005

102,864.00

(1) 17,136.00

34,272.00

01/01/2006 – 31/12/2006

85,728.00

(1) 17,136.00

51,408.00

01/01/2007 – 31/12/2007

68,592.00

(1) 17,136.00

68,544.00

01/01/2008 – 31/12/2008

51,456.00

(1) 17,136.00

85,680.00

01/01/2009 – 31/12/2009

34,320.00

(1) 17,136.00

102,816.00

01/01/2010 – 31/12/2010

17,184.00

(2) 17,184.00

120,000.00

(1) Specific rule = Based on FY implies a complete charge for the acquisition fiscal year 130,000 * 14.28% = 17,136.00
(2) (120,000.00 – 102,816.00) = 17,184.00 since the depreciation end date (31/12/2011) is in this fiscal year.

Distribution of the fiscal year 2004 charge: = Acquisiion iscal year.

Period

Previous periods depreciation total

Period charge

01/01/2004 – 31/01/2004

 

0.00

… - …

0.00

0.00

01/06/2004 – 30/06/2004

0.00

0.00

01/07/2004 – 31/07/2004

0 ,00

2,856.00

01/08/2004 – 31/08/2004

2,856.00

(4)  2 856,00

01/09/2004 – 30/09/2004

5,712.00

2,856.00

10/1/2004 – 31/12/2008

8,568.00

2,856.00

11,424.00

2,856.00

12/1/2004 – 31/12/2004

14,280.00

2,856.00

Fiscal year 2004 total

17,136.00

(4) 17,136.00 * (1/6) = 2,856.00 because the complete charge of the exercise 17,136.00 is ventilated on the months of detention, is 6 months.

Distribution of the fiscal year 2005 charge in the case where the asset is issued on 15/whereas Thuk05/2005, while the current period is [01/05/2005 – 31/05/2005]

Period

Previous periods depreciation total

Period charge

01/01/2005 – 31/01/2005

 

(1) 1,428.00

01/02/2005 – 28/02/2005

1,428.00

(2) 1,428.00

3/1/2005 – 31/03/2005

2,856.00

1,428.00

01/04/2005 – 30/04/2005

4,284.00

1,428.00

01/05/2005 – 31/05/2005

5,712.00

(3) - 5,712.00

01/06/2005 – 30/06/2005

0.00

0.00

01/07/2005 – 31/07/2005

0.00

0.00

01/08/2005 – 31/08/2005

0.00

0.00

01/09/2005 – 30/09/2005

0.00

0.00

01/10/2005 – 31/10/2005

0.00

0.00

01/11/2005 – 30/11/2005

0.00

0.00

Fiscal year 2005 total

0.00

(1) (120,000 * 14.28% * 1/12) = 1,428.00
(2) (120,000 * 14.28% * 2/12) – 1,428.00 = 1,428.00
(3) 0.00 - 5,712.00 = - 5,712.00 since the charge for the disposal fiscal year is 0; the charges for the closed periods must be reused.