Depreciation calculation method is used to save monthly production quantity on year basis for fixed assets with production quantity. It is located in F9-right mouse button menu of fixed asset records window.
In production capacity window, monthly production quantity is saved by selecting the required year with "{*}New{*}" button.
When year value is changed, production quantities are updated.
Periodical depreciation amount is calculated as below.
[Monthly Production Quantity*( Input Cost - Salvage Value)\]/Production Capacity
Example:
A calculation for a fixed asset of which input cost is 70.000 TL and salvage value is 10.000 TL and estimated to produce 6.000 pieces during its service time:
Depreciable Expense= 70.000-10.000 = 60.000 TL
Depreciation amount per production unit= 60.000 / 6.000 = 10 TL
Annual production quantities are 1000, 1100, 1200, 1300, 1400 respectively.
In this case, depreciation table will be as below:
Opening Book Value | Periodical Production Quantity | Periodical Depreciation | Accumulated Depreciations | Year-end Book Value |
|---|---|---|---|---|
70,000 | 1,000 x | 10 x 1.000 = | 10,000 | 60,000 |
60,000 | 1,100 x | 11,000 | 21,000 | 49,000 |
49,000 | 1,200 x | 12,000 | 33,000 | 37,000 |
37,000 | 1,300 x | 13,000 | 46,000 | 24,000 |
24,000 | 1,400 x | 14,000 | 60,000 | 10,000 (Salvage Value) |