Depreciation Method

[San_Thida_Myo_Latt]

Is this possible to allow user to choose depreciation methods?

1. Straight-line
2. Double declining balance
3. Units of production
4. Sum of years digits

Current Calculation is “Double Declining Balance”

Most of small company are using “Straight Line”

[Tut]

The program won’t calculate other methods, but you can make your own entries.

[Patch]

@San_Thida_Myo_Latt

are using “Straight Line”

While I agree it is common it is also easy to calculate manually. What I do is

• add a custom field with a drop down list for depreciation method (as a note to self only).

• use the built in depreciation work sheet to calculate items using residual value depreciation (compound interest / depreciation).

• For Items using straight line copy the depreciation amount from the last period (residual value is constant until book value is zero).

[San_Thida_Myo_Latt]

is there any plan to allow user to choose depreciation methods?

1. Straight-line
2. Double declining balance
3. Units of production
4. Sum of years digits

[Ealfardan]

There are two ideas that will help users implement other methods of depreciation:

Recurring and automatic depreciation

Dear @lubos Is it possible that an option can be enabled to schedule automatic recurring depreciation? A similar alternative to recurring journal entries. Thank you!

Multiple dates in one journal entry

@Mark, they are not the same. The recurrent journal entry will contain the same financial information, i.e. The transaction data is saved and duplicated each time, with only the transaction dates changing. With the idea being discussed here, there could be different figures or details for the scheduled transactions for each date of the transaction. I will be adding an illustration later.

However, I’m not sure that will work for units of production though.