About manual depreciation [AX 2012]

Updated: December 9, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

When you set up a fixed asset depreciation profile and you select Manual in the Method field in the Depreciation profiles form, the depreciation of fixed assets that are assigned to this depreciation profile is determined by the percentage that you enter for each interval in the calendar year.

The intervals that you set up with percentages are posted according to the selection that you make in the Period frequency field on the General FastTab of the Depreciation profiles form. The posting intervals that you can select are as follows:

  • Yearly

  • Monthly

  • Quarterly

  • Half-Yearly

  • Daily

When you select the posting interval, click Manual schedules and set up percentages for each posting interval.

The manual schedules and the posting intervals together define the depreciation amount, as shown in the examples later in this topic. Manual depreciation always is calculated as a percentage of the acquisition price.

With manual depreciation, the percentages that you enter in the intervals of the depreciation do not have to total 100 percent. It is a flexible depreciation method that is often used to define an extraordinary depreciation profile in the Depreciation books form, such as a non-periodic depreciation for special (perhaps tax) purposes.

NoteNote

(ITA) For legal entities whose primary address is in Italy, assets must be depreciated monthly and be fully depreciated using the Manual depreciation method.

Acquisition price: 11,000.00

Expected scrap value: 1,000.00

The following table displays the intervals and percentages that you set up in the Fixed asset depreciation profile schedules form.

Interval number

Percentage

1

10.00

2

50.00

3

8.00

The depreciation for each interval is calculated as follows.

Calculation of yearly depreciation amount

Net book value at the end of the interval

Interval 1

(11,000 - 1,000) * 10% = 1,000

10,000 (11,000 - 1,000)

Interval 2

(11,000 - 1,000) * 50% = 5,000

5,000 (10,000 - 5,000)

Interval 3

(11,000 - 1,000) * 8% = 800

4,200 (5,000 - 800)

If you select Monthly in the Period frequency field, you have set up 12 manual schedule intervals. The depreciation amounts for the first two intervals might be as follows.

January

(11,000 - 1,000) * 10% = 1,000

February

(11,000 - 1,000) * 50% = 5,000

If you select Half-Yearly, you have set up two manual schedule intervals. The depreciation amounts might be as follows.

June 30

(11,000 - 1,000) * 10% = 1,000

December 31

(11,000 - 1,000) * 50% = 5,000

The total of percentages for all intervals does not have to be 100. However, a message is displayed if the value in the Cumulative percentage field in the Fixed asset depreciation profile schedules form is not 100.


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