depreciation method

Can any one explain depreciation method of straight Line

?

functional flow/Technical flow

how the lines are creating in AssetDepBookProfile?

Hello Ven,

Depreciation profiles are used to define rules for calculating depreciation of Fixed Assets. The creation of profiles is required for depreciable assets. This usually refers to tangible assets, but intangible assets may use depreciation profiles also.

Microsoft Dynamics AX 2009 has twelve depreciation methods, which are designed to fulfill the needs of most businesses.

Straight Line Depreciation: When using the straight line method, the depreciable value of the asset is reduced by the same amount for each period. Straight line depreciation, is generally computed by taking the costs of acquisition and dividing those costs by the expected service life of the assets.

Microsoft Dynamics AX 2009 offers two methods for Straight line depreciation:

• Straight line service life

When you set up a fixed asset depreciation profile and select the value Straight line service life in the Method field on the Depreciation profiles form, the depreciation of fixed assets that are assigned to this depreciation profile is based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.

To set up Straight line service life depreciation, you also must make selections in two fields on the General tab of the Depreciation profiles form. First, you make a selection in the Depreciation year field. Depending on your selection, different options appear in the Period frequency field.

The only difference in the depreciation amount calculated between straight-line service life remaining and straight-line service life is when there is an adjustment posted to the asset.

• Straight line life remaining

When you set up a fixed asset depreciation profile and select the value Straight line life remaining in the Method field on the Depreciation profiles form, the depreciation of fixed assets that are assigned to this depreciation profile is based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.

To set up Straight line life remaining depreciation, you also must make selections in two fields on the General tab of the Depreciation profiles form. First, you make a selection in the Depreciation year field. Depending on your selection, different options appear in the Period frequency field.

AssetDepBook Table: The AssetDepBook table contains the depreciation information related to a depreciation book for an individual fixed asset. Depreciation books change the simulated financial value of a fixed asset over time for various purposes, such as accounting depreciation, tax depreciation, revaluation, and disposal. A depreciation book represents an independent simulated financial life cycle and each fixed asset can have several depreciation books.