Column information of the depreciation table can be grouped under the start, pre-valuation and post-valuation categories.
Information displayed on these columns includes the information entered on the fixed asset definition or record window or specified in the Administration section as parameters. The information contained in the starting info columns:
Year: Indicates the year for which the depreciation line is calculated. This depends on the depreciation start date, and not on the fixed asset purchase date. The depreciation start date is the first day of the default start year (01.01.XXXX) in normal and declining balance depreciations, and the first day of the related month (01.XX.XXXX) in pro-rata depreciation.
Month: Depreciation tables can also be calculated periodically. The month column indicates the last month of calculation.
Revaluation Rate: The column used to list the revaluation rate set for the related year. The rate is defined using the revaluation rates option of the Administration Parameters.
Depreciation: This column lists the depreciation rate specified for the record. The default value is read from the card, but can be modified on the fixed asset record. If normal depreciation is used, the rate is calculated by dividing 100% by the number of years entered. If declining balances are used, the rate is calculated by dividing 200% by the number of years entered.
Method: Indicates the depreciation allocation method. It contains Normal and Decreasing Balances options.
Starting Cost: The purchase amount of the fixed asset. Fixed assets can be entered using two methods. The first method is transfer, and is entered using fixed asset records option (F9 menu) on the fixed asset card. These options are displayed with a D on the fixed asset record list. Here the cost is not multiplied with quantity, and VAT is not included. The cost entered on the record is directly reflected on the depreciation table starting cost. The second entry method is purchase invoice. These records do not contain a special letter on the fixed asset list. Here the unit price entered on the invoice is multiplied with quantity, and VAT is added. These records are displayed the same way as transferred fixed assets on the record.
Expenses not Revaluated: Expenses are additional surcharges that occur in time for the related fixed asset record. These are recorded through the purchase invoice or the depreciation table. Expenses for the current period are recorded through purchase invoices, and expenses for other periods are recorded through the table. Expenses are entered using either F9-"Link to Fixed Asset" option on the purchase invoice or F9- Recorded Expenses option on the depreciation table. Expenses are classified as Expenses Revaluated and Expenses Not Revaluated. Revaluated expenses are processed during revaluation, while the others are not.
Loss of Value: Whole or part of the fixed assets may be sold within the calculation period. The amount calculated with the cost/total quantity x quantity sold formula is deducted from the cost in order to exclude the sold assets from further calculations. In this way, these assets are excluded from calculation.
Total Cost: Calculated with the following formula: Starting cost + Expenses revaluated + Expenses not revaluated – loss of value.
Pre-Valuation Info
These columns contain totals before valuation.
Fixed Asset Value (Before Rev.): The fixed asset value before revaluation. This value is equal to the Total Cost column for the first year. Expenses not revaluated for the current year + Expenses revaluated for the current year + Post-revaluation fixed asset value for the previous year x (1-loss of value for the current year/(starting cost – total loss of value for the previous year))
Note: (1) Total Loss of Value is an auxiliary calculation. The calculation method can be found at the end of the document.
Accumulated Depreciation (Before Rev.): Indicates the accumulated depreciation before revaluation. The value is zero for the first year. The following years are calculated as: total accumulated depreciation for the previous year x (1-loss of value for the current year/(starting cost - total loss of value for the previous year))
Note: (1) Total Loss of Value is an auxiliary calculation. The calculation method can be found at the end of the document.
Book Value (Before Rev.): Indicates the book value before revaluation. The value is calculated by extracting the accumulated depreciation (before revaluation) from the fixed asset value (before depreciation).
Post-Valuation Info
The post-revaluation fixed asset value, accumulated depreciation amount and the book value of the fixed asset are listed on the related columns.
Fixed Asset Value (Post-Rev.) Indicates the fixed asset value after revaluation. The value is equal to the fixed asset value before revaluation for the first year. The following years are calculated as: Fixed asset value (before Rev.) for the current year – expenses revaluated for the current year – total expenses not revaluated for the current year x (1-revaluation rate) + expenses revaluated for the current year + total expenses not revaluated for the current year
Note: (2) Total Expenses not Revaluated is an auxiliary calculation. The calculation method can be found at the end of the document.
Accumulated Depreciation (Post-Rev.) Indicates the accumulated depreciation after revaluation. The value is zero for the first year. For following years, it is calculated with the sum of accumulated depreciation amount (before revaluation) of the current year x (1/revaluation rate for the current year).
Book Value (Post-Rev.) Indicates the book value after revaluation. The value is calculated by extracting the accumulated depreciation (post-revaluation) from the fixed asset value (post-depreciation).
Value Increase Fund: This value is calculated by subtracting the book value (pre-revaluation) of the related year from the book value (post-valuation) of the related year.
Yearly Depreciation: If the depreciation type is Normal, it is calculated as the net book value (post-valuation) x 1/related year. Here the year value is 1 for the first, 2 for the second year and so on.
If the depreciation type is Decreasing Balances, it is calculated as the net book value (post-valuation) of the related year x depreciation rate until the last year. If the depreciation is calculated for the last year, the net book value (post-valuation) is reflected in whole.
Total Accumulated Depreciation: This value is equal to the yearly depreciation for the first year. For following years, it is equal to the sum of accumulated depreciation amount (post-valuation) of the related year and the yearly depreciation.
Book Value (EOY): This value is calculated by subtracting the total accumulated depreciation of the related year from the fixed asset value (post-valuation) of the related year.
Periodic Active Revaluation: This applies only to years with revaluation. This value is calculated by subtracting the total fixed asset value (pre-valuation) of the related year from the fixed asset value (post-valuation) of the related year.
Periodic Accumulated Depreciation Revaluation: This applies only to years with revaluation. This value is calculated by subtracting the accumulated depreciation (pre-valuation) of the related year from the accumulated depreciation (post-valuation) of the related year.
Periodic Depreciation: Displays the yearly depreciation amount in yearly calculations. The aim of this column is to reflect the depreciation calculated for the period.
Auxiliary Calculations
(1) Total Loss of Value: This value is equal to the yearly loss of value for the first year. For the following years, the value is equal to the sum of the loss of value for the previous and the current year.
(2) Total Expenses not Revaluated: This value is equal to the yearly expenses not revaluated for the first year. For the next years, the following formula is used : (1)total expenses not revaluated for the previous year x (1-loss of value for the current year / (starting cost –(1) total loss of value for the previous year)) + expenses not revaluated for the current year.
Decrease In Value (Expertise): It is the difference between new fixed asset value, entered at Decrease / Increase of Fixed Asset Value window, and its value before the relevant date.
Increase In Value (Expertise): It is the difference between new fixed asset value, entered at Decrease / Increase of Fixed Asset Value window, and its value before the relevant date.
Allocate The Remaining Depreciation
For the transactions which are included in the scope of private cost, depreciation may be required to be allocated / recognized as an expense. For this, "Allocate The Remaining Depreciation" option is used which is located in F9/right Mouse button menu of fixed asset's depreciation line for which depreciation is wanted to be allocated. In the periods when private costs are expired, their remaining parts amortized completely in related month. Fixed asset's net asset value is reset and some data as periodic depreciation of fixed asset or total accumulated depreciation is updated. If the transaction is not posted to G/L, depreciation can be recalculated for the related fixed asset.