## Wednesday, December 19, 2018

### Create a Fixed Declining Depreciation Method Based on Value at Beginning of Year

Create a depreciation method that would calculate depreciation as base value at beginning of year x (200%/Asset Life)

For example Asset cost = 10,000 to be depreciated over 4 years:
Year 1
10000 Beginning book value x (200%/4) = \$5000
Prorated each month = \$5000 / 12 = \$416.67 each month.

Year 2
5000 Beginning book value x (200%/4) = \$2500
Prorated each month = \$2500 / 12 = \$208.33

Year 3
2500 Beginning book value x (200%/4) = \$1250
Prorated each month = \$1250 / 12 = \$104.16

Year 4

1250 Beginning book value x x (200%/4) = \$625
Prorated each month = \$1250 / 12 = \$52.083

There is currently no standard method for this type of depreciation. As an alternate solution, create a custom depreciation method:

1. Navigate to Fixed Assets > Setup > Depreciation Methods > New.
2. Enter a name for the depreciation method on the Name field
3. Enter a brief description of the depreciation method on Depreciation Method Description field.
4. Set Depreciation Period to Monthly.
5. On the Depreciation Formula field enter: (OC-(2*AL*PB))*2/AL ~ PB*2/AL
6. Click Save.