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User-Defined Method

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The program has a facility that allows you to set up user-defined depreciation methods.

With a user-defined method, you use the Depreciation Tables window, where you must enter a depreciation percentage for each period (month, quarter, year, or accounting period).

The formula for calculating the depreciation amounts is:

Depreciation Amount = (Depreciation % * Number of Depreciation Days * Depr. Basis) / (100 * 360)

Depreciation Based on Number of Units

This user-defined method can also be used to depreciate based on number of units, for example, in the case of production machines with an established lifetime capacity. In the Depreciation Tables window, you can enter the number of units that can be produced in each period (month, quarter, year, or accounting period).

For an example, see Example - User-Defined Depreciation Method for more information.

See Also

Tasks

How to: Set Up User-Defined Depreciation Methods

Concepts

Depreciation Methods
Depreciate or Amortize Assets
Set Up Depreciation