Fixed assets depreciation methods for China

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This article explains how to create a depreciation method profile for legal entities in China.

The sum of the years' digits method of depreciation (SYD) is one of the accelerated depreciation techniques. It assumes that assets are more productive when they're new and their productivity decreases as they age. The formula to calculate depreciation under the SYD method is:

SYD Depreciation = Depreciable base × (Remaining useful life/Sum of the  years digits)

To create a depreciation profile:

1. On the Fixed assets parameters page, select the SYDM and DRBM depreciation methods.
2. Create a new depreciation profile. Use the method of either Sum year digits or Double reducing balance.
3. Create a book for the depreciation method, use either Sum year digits or Double reducing balance.

For more information, see Setup fixed asset depreciation allocation.