DEFAULTS |
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Depreciation Type | Indicates the fixed asset depreciation type default to be used in depreciation tables and calculations. This parameter includes the following options: - Normal
- Declining Balances
- Units of Production
- Sum of Year's Digits
When Normal depreciation is applied, the value of the fixed asset is reset within a certain period of time and by applying equal deductions. The record defaults to be used in calculations are specified.
When Declining Balances is used, the value of the fixed asset diminishes each year for the specified depreciation rate. The depreciation value of the next year is calculated over the actual value of the fixed asset. In this way, the value of the fixed asset diminishes every year.
Units of Production Depreciation Method: Units of production methods depreciate the asset cost based on actual use or production each period.
Units of production depreciation differs from other methods because it bases depreciation only on how much you use the asset. While methods such as straight-line divide depreciation over the asset life regardless of use, units of production disregards the passage of time.
Units of production depreciation is used for assets for which it is better to measure the life in terms of the quantity of the resource you expect to extract from them, such as mines or wells. For example, the production capacity of an oil well is the number of barrels of oil you expect to extract from it. For machinery or equipment, you measure the production capacity in terms of the expected total hours of use.
You can enter the production capacity as the expected total production or expected total use. First, you enter the units of production depreciation method, production capacity, and unit of measure. You then enter the production each period to depreciate the asset according to actual use that period.
Sum of Year's Digits: Sum-of-the-years'-digits depreciation is an accelerated depreciation method that allocates a greater percentage of the asset to early periods and a smaller percentage of the asset to later periods. The basic premise of this method is that as an asset ages, it begins to wear out, thus providing less value. Sum-of-the-years'-digits uses a formula to calculate the rate of depreciation.
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Revaluation | The revaluation default of the fixed assets. This filter contains Yes and No options. |
Revaluation Depreciation | The depreciation due to revaluation default of the fixed assets. This filter contains Yes and No options.
Attention: Revaluation can be applied to tangible assets that are subject to depreciation. Companies that keep books according to the balance sheet method, and companies that have abroad operations can revaluate their domestic assets. |
Pro-rata Depreciation | The pro-rata depreciation default of the fixed assets. This filter contains the Yes and No options.
Attention: Pro-rata depreciation indicates the depreciation calculation performed by processing the number of months from the date of purchase to the end of the year. According to the current application, pro-rata depreciation is applied only to vehicles used in companies. All fixed assets, apart from vehicles, are subject to yearly depreciation. Only half of the surcharges for vehicles are accepted as expenses. Expenses increasing the economic value of the vehicle are included in the original cost. Maintenance expenses are not included in cost. |
Scope of Investment Discount | Indicates whether or not the fixed asset is in the scope of investment discount. This filter contains Yes and No options. |
Investment Discount Rate (%) | The investment discount rate default of the Fixed Asset. |
Depreciation Rate Rounding | Used to determine Depreciation Rate Rounding method. It contains the following options: - Rounding up
- Mathematical Rounding
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Depreciation Calculation Options | The parameter is used to specify whether or not depreciation calculations will be performed for that year. This filter contains Yes and No options.When "Yes" is selected, calculations are performed using the "calculate" option located in the right mouse button menu of the depreciation table.When "No" is selected, the "calculate" option is not available in the menu. |
Pro-rata Depreciation | Used to determine Pro-rata Depreciation calculation method. It contains the following options: - Will be parted in the last year
- Will be separated to years
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Rate Control in Declining Depreciation Method | As required by law 2. 5228, depreciation rate cannot exceed the 50% limitation in declining balance method.
In this parameter line, if you select "Yes", you will not be able to define depreciation rate more than 50%. Even if you define it more than 50%, it will be recorded as 50%, up to last year, the depreciation will be calculated at the rate of 50% and last year, the entire remaining amount will be amortized. |
Pro-rata Alternative Depreciation Calculation | Used to specify the default pro-rata alternative depreciation calculation method. It contains the following options: - On Remaining Years
- On Remaining Months
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Depreciation Calculation When Previous Period Info is Used | Used to determine calculation method of depreciation for fixed assets that previous period info is used for. It contains the following options: - By Rate
- By Year
When "Year" option is selected, the depreciation is calculated over rest of the year.
When "Rate" is selected, the calculation is done over the depreciation rate specified at fixed asst record.
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Invoice Related Fixed Asset Records Will Be Transferred With XML | When transferring fixed asset records between companies with XML, it is the transferring default of invoice related fixed asset records. The parameter line contains Yes and No options. When "Yes" is selected, invoice related fixed asset records are also transferred with XML directly without considering invoice transfers. |
Depreciation Calculation for Records with Updated Expertise Values to Be Performed The Next Year | It is yearly depreciation calculation default for fixed assets for which depreciation is not calculated within a specific period and its expertise value is increased in next period.
Parameter line contains the following options: - Over Rate
- Over Year
If Over Rate is selected, when depreciation is not calculated for a fixed asset in a specific period and when its expertise value is increased in next period, fixed asset's yearly depreciation is calculated over the depreciation rate specified in fixed asset record.
If Over Year is selected, when depreciation is not calculated for a fixed asset in a specific period and when its expertise value is increased in next period, fixed asset's yearly depreciation is calculated over remaining year.
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Discounts Will Be Reflected To The Fixed Asset Record Generated While Purchasing Fixed Asset | When a fixed asset is purchased, this parameter is used to determine whether the relevant discount applied to the fixed asset in purchasing invoice will be reflected to the fixed asset cost. It has two options: Yes and No. If "Yes" option is selected, fixed asset input cost will be calculated over the discounted amount when discount is applied to the purchased fixed asset. Depreciation is calculated over this amount. |