Depreciation profiles in Ax 2012


Depreciation profiles in Ax are used as a set of rules that govern the depreciation principles to be applied on the fixed assets. These profiles are generally used for tangible assets however, if required the depreciation profile can be used for intangible assets as well.
Ax supports the following depreciation methods:
  1. Straight line Service life (SLM)
  2. Reducing Balance
  3. Manual
  4. Factor
  5. Consumption
  6. Straight line life remaining
  7. 200% reducing balance
  8. 175% reducing balance
  9. 150% reducing balance
  10. 125% reducing balance
The use of the depreciation methods are generally governed by the requirements placed by the local laws. Generally the companies use the Straight line service life, Reducing balance or manual methods of depreciation.
Setup Depreciation profile
  1. Fixed Assets –> Setup –> Depreciation –> Depreciation Profile
  2. Click New to create a new depreciation profile
  3. Select the depreciation method in the Method field; based on the method selected the system enables/disables different fields to be used.
Below table shows the combination of the method & the fields that are enabled/disabled by the system.
Depreciation Method/Field Visibility
Percentage
Depreciation Year
Period Frequency
Full depreciation
Factor
Interval
Straight line service life
No
Yes
Yes
No
No
No
Reducing Balance
Yes
Yes
Yes
Yes
No
No
Manual
No
No
No
Yes
No
No
Factor
No
No
No
No
Yes
Yes
Consumption
No
No
No
No
No
No
Straight line Remaining life
No
Yes
Yes
No
No
No
200% Reducing balance
No
Yes
Yes
Yes
No
No
175% Reducing
No
Yes
Yes
Yes
No
No
150% Reducing
No
Yes
Yes
Yes
No
No
125% Reducing
No
Yes
Yes
Yes
No
No
 
Percentage: Use this field to define the percentage to calculate the depreciation. The system calculates the depreciation by calculating value as % * Net Book Value of the asset.
Depreciation Year: Determines the depreciation year; Calendar or Fiscal.
When selected Calendar then the system considers the Calendar year starting from Jan. 1st
When selected Fiscal then the system considers the fiscal year setup
 
Period Frequency: Determines the accrual of the depreciation amounts. Following options are available depending on the depreciation year selected.
In case Calendar year is selected then:
Yearly
Monthly
Quarterly
Half-Yearly
In case Fiscal year is selected then:
         Yearly
         Fiscal Period
 
Full Depreciation: This field allows using the Net book value of the asset based on service life in the last period to calculate depreciation.
 
Factor: Derives value from the Percentage field on the overview tab.
 
Interval: Field determines how frequently the depreciation will be charged:
         Monthly
Quarterly
         Half-Yearly
Yearly

 

 

Happy Learning.!               

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