Value Model

Adquately explain the purpose of a value model

Hi Dayna,

Initially User creates Depreciation profile where in Method of Depreciation is chosen from the drop down later selecting the Depreciation Year and Period Frequency. Once completing this process User can create value Model.

Value model Is the important content for the entire Depreciation as, User is advising the application to calculate based on the information provided in the Value Model form. So based on the info provided calculation is done for any Asset.

Things to be considered in Value Model are :- Depreciation Check box, Depreciation Profile, Posting layer and calender

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What is depreciation books?

How is it different that value models?

Hi Dayna,

The purpose of Using the Depreciation Book is different to that of Value Model, though the setups are similar. When an Asset is Acquired or Depreciated using Value Model, will have an Financial Impact to the Ledgers, but its not the case with the Depreciation Book, using this book will not have any impact to the Ledger accounts but can be used to draw out the information about the Asset.

Depreciation Book is used to record any Taxes related to state, region etc so to show such an information this book can be Used.

Note:- Depreciation will be calculated based on Companies Act and Income Tax Act …

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Hi,

Depreciation Book is used to associate an asset. Information recorded regarding acquisition, additional depreciation, purchasing and sales information for the asset. Depreciation book can group the assets and calculate depreciation. Whereas, in value models contains information of a fixed asset profile(Life cycle). A fixed asset can have several value models and each value model has transaction pertaining to the fixed asset to which it is attached. Value model transactions are posted to general ledger.

Hope this helps,

Shantanoo, Barry-Wehmiller International Resources

Could you tell me why a fixed asset has several value models and explain the business scenario ?