Standard depreciation method description @ L.V. Expertise X3

This document describes the calculation principles for depreciation methods other than French standard depreciation methods.

French methods are described in an attached document.

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Examples

DA - German declining

This is a declining depreciation method that differs from the German mixed declining method since the depreciation rate is systematically applied as long as the depreciation end date is not reached: the depreciation is thus closed as soon as the depreciation end date is detected.

Depreciation origin

The origin depends on the prorata temporis:

If the prorata temporis is expressed in months:
The origin of the declining depreciation will be the first day of the month entered in the depreciation start date.
If the prorata temporis is expressed in weeks:
The origin of the declining depreciation will be the 1st day of the 1st week in the month entered in the depreciation start date.

(specified at Depreciation method setup) is retained, the depreciation start date will automatically be loaded with the 1st day of the acquisition quarter: the depreciation origin will thus be determined from this date.

Duration

It must be entered by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

$..\FCT\SEEINFO$ For this depreciation method, Sage X3will round to the 2nd decimal all durations entered or imported on more than 2 decimals. Ditto for residual durations calculated within the framework if intra-group sales.

Rate

The rate that can be applied for the declining depreciation calculation cannot be determined by field associations, it is automatically determined by Sage X3 as follows:

Decrease of both values: (1 / depreciation duration* 2) and Maximum rate

The maximum depreciation rate in use since 01/01/2006 is 30%; previously, it was 20%.

Depreciation end date

It depends on the prorata temporis type.

If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end to be found at month end.

Example 1:

- Depreciation start date: 05/12/2005
- Duration: 3 years
Depreciation end date: 30/11/2008

Example 2:

- Depreciation start date: 01/07/2005
- Duration: 5 years
Depreciation end date: 30/06/2010
If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the 1st week in the month entered in the depreciation start date + depreciation duration in weeks.
This leads to a depreciation end to be found at week end.

Example 3:

- Depreciation start date: 09/15/2005 (the 1st day of the 1st week in 09/05 is the 05/09/2005)
- Duration: 5 years
Depreciation end date: 29/08/2010

Prorata temporis

The time is expressed in months or in weeks if flag Prorata temporis in weeks is active at depreciation context level.
A prorata temporis is applied in the following situations:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When a fiscal year has a duration different from 12 months or 52 weeks in case of prorata temporis in weeks.
During the disinvestment fiscal year, the depreciation expenditure is calculated until the last day of the month entered in the issue date (or until the last day of the last week in the month specified in the issue date, when flag Prorata temporis in weeks is active).This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

The fiscal year charge, except for the last one, equals:
Net depreciation value * rate * prorata temporis

A prorata temporis in months or in weeks is applied in the following situations:

- The Depreciation start date is superior to the Fiscal year start date
- The fiscal year Duration differs from 12 months (or 52 weeks in case of prorata temporis in weeks)
- The asset Issue date belongs to interval [Fiscal year dtart date – Fiscal year end date]
The depreciation expenditure of the fiscal year in which the Depreciation end date is located is equalt to:
Fiscal year start net depreciation value * prorata temporis

If the depreciation end date is inferior to the fiscal year end date, the fiscal year charge will automatically be loaded with the net depreciation value so as to close the depreciation.

A prorata temporis in months or in weeks is applied in the following situations:
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]
and
- The Issue date is inferior to the Depreciation date

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 31/08/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	(2) 2 700,00	3 700,00
01/01/2007 – 31/12/2007	6 300,00	1 890,00	5 590,00
01/01/2008 – 31/12/2008	4 410,00	1 323,00	6 913,00
01/01/2009 – 31/12/2009	3 087,00	926,10	7 839,10
01/01/2010 – 31/12/2010	2 160,90	(3) 2 160,90	10 000,00

(1) 10 000,00 * 30% * 4/12th for the asset is only held for 4 months during this 1st fiscal year.

(2) 9 000,00 * 30% = 2 700,00

(3) 2,160.90 for the depreciation end date is to be found in this fiscal year The depreciation is closed.

Distribution of the 2010 fiscal year charge based on the period weight in months:

Period	Number of months / Weight	Number of holding months	Depreciation charge
01/01/2010 – 31/03/2010	03 / 03	03	(4) 884,41
01/04/2010 – 30/06/2010	03 / 03	03	(5) 884,40
01/07/2010 – 30/09/2010	03 / 02	02	(6) 392,09
01/10/2010 – 31/12/2010	03 / 03	00	(7) 0,00
2010 fiscal year total			2 160,90

(4) 2 160,90 * (03 / 03 * 03) / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 884,41

(5) 2 160,90 * [(03 / 03 * 03) + (03 / 03 * 03)] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 1 768,81 – 884,41 = 884,40

(6) 2 160,90 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02)] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 2 160,90 – 1 768 ,81 = 392,09

(7) 2 160,90 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 2 160,90 – 2 160,90 = 0,00

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 3.33 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 31/12/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	(2) 2 700,00	3 700,00
01/01/2007 – 31/12/2007	6 300,00	1 890,00	5 590,00
01/01/2008 – 31/12/2008	4 410,00	(3)4 410,00	10 000,00

(1) 10 000,00 * 30% * 4/12th for the asset is only held for 4 months during this 1st fiscal year.

(2) 9 000,00 * 30% = 2 700,00

(3) 4,410.00 for the depreciation end date is to be found in this fiscal year The depreciation is closed.

In case of asset issue on 06/14/2007 (depreciations are calculated until the last day of the month 06/2007):

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	2 700,00	3 700,00
01/01/2007 – 31/12/2007	6 300,00	(4) 945,00	4 645,00

(4) 6 300,00 * 30% * 6/12th = 945,00 for the asset is being held only for 6 months.

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 29/08/2010
Special feature: management of the prorata temporis in weeks

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	(2) 2 705,77	3 686,54
01/01/2007 – 30/12/2007	6 313,46	1 894,04	5 580,58
31/12/2007 – 28/12/2008	4 419,42	1 325,83	6 906,41
29/12/2008 – 27/12/2009	3 093,59	928,08	7 834,49
28/12/2009 – 02/01/2011	2 165,51	(3) 2 165,51	10 000,00

(1) 10 000,00 * 30% * 17/52nd for the asset is only held for 17 weeks during this 1st fiscal year.

(2) 9 019,23 * 30% = 2 705,77

(3) Depreciation expenditure = Net value since the depreciation end date 08/29/2010 is to be found in the fiscal year.

Distribution of the 2006 fiscal year charge based on the period weight in weeks:

Period	Number of months / Weight	Number of holding months	Depreciation charge
02/01/2006 – 02/04/2006	13 / 13	13	(4) 732,81
03/04/2006 – 02/07/2006	13 / 13	13	(5) 732,82
03/07/2006 – 01/10/2006	13 / 09	13	(6) 507,33
02/10/2006 – 31/12/2006	13 / 13	13	(7) 732,81
2006 fiscal year total			2 705,77

(4) 2 705,77 * (13 / 13 * 13) / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 732,81

(5) 2 705,77 * [(13 / 13 * 13) + (13 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1 465,63 – 732,81 = 732,82

(6) 2 705,77 * [((13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1 972,96 – 1 465,63 = 507,33

(7) 2 705,77 * [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 2 705,77 – 1 972,96 = 732,81

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 3.33 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 28/12/2008
Special feature: management of the prorata temporis in weeks

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	(2) 2 705,77	3 686,54
01/01/2007 – 30/12/2007	6 313,46	1 894,04	5 580,58
31/12/2007 – 28/12/2008	4 419,42	(3) 4 419,42	10 000,00

(1) 10 000,00 * 30% * 17/52nd for the asset is only held for 17 weeks during this 1st fiscal year.

(2) 9 019,23 * 30% = 2 705,77

(3) Depreciation expenditure = Net value since the depreciation end date 28/12/08 is to be found in the fiscal year.

In case of asset issue on 07/14/2007 (depreciation calculated until the last day of the last week in 07/2007, i.e. on 07/29/2007):

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	2 705,77	3 686,54
01/01/2007 – 30/12/2007	6 313,46	(4) 1 092,72	4 779,26

(4) 6 313,46 * 30% * (30 weeks / 52 weeks) = 1 092,72

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

DX - German mixed declining

It is the declining depreciation method applied based on German rules. It is called German mixed declining in so far as the depreciation schedule end in straight-line, as it is the case with the French declining method.

Depreciation origin

The origin depends on the prorata temporis:

If the prorata temporis is expressed in months:
The origin of the declining depreciation will be the first day of the month entered in the depreciation start date.
If the prorata temporis is expressed in weeks:
The origin of the declining depreciation will be the 1st day of the 1st week in the month entered in the depreciation start date.

$..\FCT\SEEINFO$ If option Simplification rule (specified at Depreciation methos setup) is retained, the depreciation start date will automatically be loaded with the 1st day of the acquisition quarter: the depreciation origin will thus be determined from this date.

Duration

It must be entered by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Rate

The rate that can be applied for the declining depreciation calculation cannot be determined by field associations, it is automatically determined by Sage X3 as follows:

Decrease of both values: (1 / depreciation duration* 2) and Maximum rate

The maximum depreciation rate in use since 01/01/2006 is 30%; previously, it was 20%.

Depreciation end date

It depends on the prorata temporis type.

If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end to be found at month end.

Example 1:

- Depreciation start date: 05/12/2005
- Duration: 3 years
Depreciation end date: 30/11/2008

Example 2:

- Depreciation start date: 01/07/2005
- Duration: 5 years
Depreciation end date: 30/06/2010

If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the 1st week in the month entered in the depreciation start date + depreciation duration in weeks.
This leads to a depreciation end to be found at week end.

Example 3:

- Depreciation start date: 09/15/2005 (the 1st day of the 1st week in 09/05 is the 05/09/2005)
- Duration: 5 years
Depreciation end date: 29/08/2010

Prorata temporis

is active at depreciation context level.
A prorata temporis is applied in the following situations:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When a fiscal year has a duration different from 12 months or 52 weeks in case of prorata temporis in weeks.
During the disinvestment fiscal year, the depreciation expenditure is calculated until the last day of the month entered in the issue date (or until the last day of the last week in the month specified in the issue date, when flag Prorata temporis in weeks is active).This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

The 1st fiscal year charge equals:
Depreciation value * rate * prorata temporis

A prorata temporis in months or in weeks is applied in the following situations:

- The Depreciation start date is superior to the Fiscal year start date
- The fiscal year Durationdiffers from 12 months (or 52 weeks in case of prorata temporis in weeks)
- The asset Issue date belongs to interval [Fiscal year date – Fiscal year end date]
The depreciation expenditure of the following fiscal years is equal to:

- thus: Fiscal year start net depreciation value * rate * prorata temporis
- thus: Fiscal year start depreciation net value
* ( number of holding months or weeks in the fiscal year
/ number of months or weeks in period [Fiscal year start date - Depreciation end date] )
if the calculation result is superior to: Fiscal year start net depreciation value * rate * prorata temporis

A prorata temporis in months or in weeks is applied in the following situations:

- The fiscal year Durationdiffers from 12 months (or 52 weeks in case of prorata temporis in weeks)
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

If the depreciation end date is inferior or equal to the fiscal year end date, the fiscal year charge is automatically loaded with the net depreciation value so as to close the depreciation.

Notes:

- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied based on the following rule:

Period charge pc =
( Σ p1 to pc ( (Period weight / Number of months or weeks in the period) * Number of holding months or weeks in the period )

p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)
p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year.

(1) Unless the asset has been issued during the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. Thus, the retained period is the minimum one among the 3 following ones:
- depreciation end period if the Depreciation end date bellongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

Σ p1 to pf ( (Period weight / Number of months or weeks in the period) * Number of holding months or weeks in the period ) )
-
Previous periods depreciation total

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 31/08/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	(2) 2 700,00	3 700,00
01/01/2007 – 31/12/2007	6 300,00	1 890,00	5 590,00
01/01/2008 – 31/12/2008	4 410,00	(3) 1 653,75	7 243,75
01/01/2009 – 31/12/2009	2 756,25	(4) 1 653,75	8 897,50
01/01/2010 – 31/12/2010	1 102,50	(5) 1 102,50	10 000,00

(1) 10 000,00 * 30% * 4/12th for the asset is only held for 4 months during this 1st fiscal year.

(2) 9 000,00 * 30% = 2 700,00

(> to 4 410,00 * 30% =1 323,00)

(4) Net value 2 756,25 * (12 months / 20 months remaining to be depreciated) = 1 653,75

(5) Depreciation expenditure = Net value since the depreciation end date 08/31/2010 is to be found in the fiscal year.

Distribution of the 2006 fiscal year charge based on the period weight in months:

Period	Number of months / Weight	Number of holding months	Depreciation charge
01/01/2006 – 31/03/2006	03 / 03	03	(1) 736,36
01/04/2006 – 30/06/2006	03 / 03	03	(2) 736,37
01/07/2006 – 30/09/2006	03 / 02	03	(3) 490,91
01/10/2006 – 31/12/2006	03 / 03	03	(4) 736,36
2006 fiscal year total			2 700,00

(1) 2 700,00 * (03 / 03 * 03) / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 736,36

(2) 2 700,00 * [(03 / 03 * 03) + (03 / 03 * 03)]

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 1 472,73 – 736,36 = 736,37

(3) 2 700,00 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03)]

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 1 963,64 – 1 472,73 = 490,91

(4) 2 700,00 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ]

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 2 700,00 – 1 963,64 = 736,36

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 3.33 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 31/12/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	(2) 3 000,00	4 000,00
01/01/2007 – 31/12/2007	6 000,00	3 000,00	7 000,00
01/01/2008 – 31/12/2008	3 000,00	3 000,00	10 000,00

(1) 10 000,00 * 30% * 4/12th for the asset is only held for 4 months during this 1st fiscal year.

(2) 9 000,00 * (12 months / 36 months remaining to be depreciated) = 3 000,00 > to 9 000,00 * 30% = 2 700,00

In case of asset issue on 06/14/2007 (the depreciation is calculated until the end of month 06/2007):

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	3 000,00	4 000,00
01/01/2007 – 31/12/2007	6 000,00	(3) 1 500,00	5 500,00

(3) 6 000,00 * (6 months / 24 months) = 1 500,00 > to 6 000,00 * 30% * 6/12th = 900,00

3rd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 29/08/2010
Special feature: management of the prorata temporis in weeks

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	(2) 2 705,77	3 686,54
01/01/2007 – 30/12/2007	6 313,46	1 894,04	5 580,58
31/12/2007 – 28/12/2008	4 419,42	(3) 1 653,31	7 233,89
29/12/2008 – 27/12/2009	2 766,11	(4) 1 653,31	8 887,20
28/12/2009 – 02/01/2011	1 112,80	(5) 1 112,80	10 000,00

(1) 10 000,00 * 30% * 17/52nd for the asset is only held for 17 weeks during this 1st fiscal year.

(2) 9 019,23 * 30% = 2 705,77

(3) 4,419.42 * (52 weeks / 139 weeks remaining to be depreciated) = 1 653,31 > à 4 419,42 * 30% =1 325,83

(4) Net value 2,766.11 * (52 wekks / 87 weeks remaining to be depreciated) = 1 653,31

(5) Depreciation expenditure = Net value since the depreciation end date 08/29/2010 is to be found in the fiscal year.

Distribution of the 2006 fiscal year charge based on the period weight in weeks:

Period	Number of months / Weight	Number of holding months	Depreciation charge
02/01/2006 – 02/04/2006	13 / 13	13	(6) 732,81
03/04/2006 – 02/07/2006	13 / 13	13	(7) 732,82
03/07/2006 – 01/10/2006	13 / 09	13	(8) 507,33
02/10/2006 – 31/12/2006	13 / 13	13	(9) 732,81
2006 fiscal year total			2 705,77

(6) 2 705,77 * (13 / 13 * 13) / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 732,81

(7) 2 705,77 * [(13 / 13 * 13) + (13 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1 465,63 – 732,81 = 732,82

(8) 2 705,77 * [((13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1 972,96 – 1 465,63 = 507,33

(9) 2 705,77 * [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 2 705,77 – 1 972,96 = 732,81

4th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 3.33 years
Rate: 30 % (maximum rate applied)
Depreciation end date: 28/12/2008
Special feature: management of the prorata temporis in weeks

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	(2) 3 006,41	3 987,18
01/01/2007 – 30/12/2007	6 012,82	3 006,41	6 993,59
31/12/2007 – 28/12/2008	3 006,41	3 006,41	10 000,00

(1) 10 000,00 * 30% * 17/52nd for the asset is only held for 17 weeks during this 1st fiscal year.

(2) 9,019.23 * (52 weeks / 156 weeks remaining to be depreciated) = 3,006.41 > à 9,019.23 * 30% =2,705.77

In case of asset issue on 07/14/2007 (depreciation calculated until the last day of the last week in 07/2007, i.e. on 07/29/2007):

Fiscal year	Net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	980,77	980,77
02/01/2006 – 31/12/2006	9 019,23	3 006,41	3 987,18
01/01/2007 – 30/12/2007	6 012,82	(3) 1 734,47	5 721,65

(3) 6 012,82 * (30 weeks / 104 weeks) = 1 734,47

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

PR - Progressive

This depreciation method, also called Increasing depreciation, is used in various countries.
It is also accepted in French accounting.

Depreciation origin

It is systematically equal to the first day of the month specified in the depreciation start date, except if the Depreciation schedule/Context is managed in weeks. In this case, the depreciation origin systemtically is the first day of the week (Monday) in which the depreciation start date is to be found.

Duration

As the depreciation rate is determined based on the sum of the data for each fiscal year, the duration must be expressed in whole years.

Rate

This progressive rate cannot be entered by the user and is determined as follows:

Number of the year concerned / Sum of the yearly data for the depreciation duration

Example:
For a 5-year depreciation, the rate applied to the second year is 2/15th. Indeed:

- the number of the 2nd year equals 2

- the sum of the data for the five years is: 5 + 4 + 3 + 2 + 1 = 15

In case of depreciation start during a fiscal year or in case of a fiscal year with a 12-month difference, 2 depreciation rates can be applied upon same fiscal year.

Depreciation end date

It depends on the prorata temporis type.

If the prorata temporis is expressed in months:

Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end located at month end.

If the prorata temporis is expressed in weeks:

Depreciation end date = 1st day of the week (Monday) in whixh the depreciation start date is to be found + (depreciation duration * 52 weeks).
This leads to a depreciation end located on the last day of the week (Sunday).

Calculation examples for the depreciation end date:

Start date	Duration & Prorata	End date
01/08/2005	3 years, prorata in months	31/07/2008
07/02/2005	3 years, prorata in months	31/01/2008
01/08/2005	3 years, prorata in weeks	27/07/2008
07/02/2005	3 years, prorata in weeks	03/02/2008

Prorata temporis

In most cases, time is expressed in months.
An exception is made when the Depreciation schedule/Context is managed in weeks: time is then expressed in weeks, too.

A prorata temporis applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the fiscal year duration has a on-year or 52-week difference if the Depreciation schedule/Context is managed in weeks.
During the disinvestment fiscal year: the depreciation charge is calculated until the issue day if the fay specified in the issue date is the last one of the month; if not, the depreciation charge is calculated until the end of the month before the issue.
This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

If the Depreciation schedule/Context is managed in weeks, the depreciation charge is calculated until the end of the week (Sunday) in which the issue date is to be found. As indicated above, this rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

Afiscal year charge is calculated as follows:
Depreciation expenditure =(Depreciation value * Rate 1) * prorata temporis 1
+ (Depreciation value * Rate 2) * prorata temporis 2

Depreciation value = (Gross value – Residual value)
Rate 1 = Depreciation rate applied in fiscal year first part
Rate 2 = Potential depreciation rate applied in fiscal year second part
Prorata temporis 1 =
Number of months (or weeks) of the period [max (Fiscal year start date, Depreciation start date)
– min (End date of the application of Rate 1, Fiscal year end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)
Prorata temporis 2 =
Number of months (or weeks) of the period [Start date of the application of Rate 2
– min (Fiscal year end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)

Notes:

- For the investment fiscal year, only one depreciation rate is applied, unless the fiscal year is superior to 12 months (or 52 weeks) and if the asset has been held more than 12 months (or 52 weeks) during this fiscal year.
- For each of the following fiscal years, 2 depreciation rates apply, each for a number of month (or weeks) defined in Prorata temporis 1 and Prorata temporis 2.
For only one depreciation rate to be applied, 2 conditions must be met: each fiscal year must have a duration of 12 months (or 52 weeks) and the depreciation origin must be the first day of the fiscal year.

For instance: asset acquired on 07/01/2005 and depreciated over 5 years. The rates applied to the following fiscal years are:

Fiscal year	Rate 1	Rate 2
01/01/2005 - 31/12/2005	1/15th for 6 months
01/01/2006 - 31/12/2006	1/15th for 6 months	2/15thfor 6 months
01/01/2007 - 31/12/2007	2/15thfor 6 months	3/15thfor 6 months
01/01/2008 - 31/12/2008	3/15thfor 6 months	4/15thfor 6 months
01/01/2009 - 31/12/2009	4/15thfor 6 months	5/15thfor 6 months
01/01/2010 - 31/12/2010	5/15thfor 6 months

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied based on the following rule:

Period charge =

(Depreciation value * Rate 1 * Prorata 1) + (Depreciation value * Rate 2 * Prorata 2)
- Previous periods depreciation total

Prorata temporis 1 =
Number of months (or weeks) of the period [max (Fiscal year start date, Depreciation start date)
– min (End date of the application of Rate 1, Current period end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)
Prorata temporis 2 =
Number of months (or weeks) of the period [Start date of the application of Rate 2
– min (Current period end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)

Notes:
- In some cases, depending on the division of the fiscal year into periods, a period can be concerned by only one depreciation rate.
- For this depreciation method, the period weights is not taken itno account: it is the effective duration of each period that is taken into account.

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 01/01/2005
Depreciation duration: 5 years
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 31/12/2006	9 333,33	(2) 1 333,33	2 000,00
01/01/2007 – 31/12/2007	8 000,00	(3) 2 000,00	4 000,00
01/01/2008 – 31/12/2008	6 000,00	(4) 2 666,67	6 666,67
01/01/2009 – 31/12/2009	3 333,33	(5) 3 333,33	10 000,00

(1) 10 000,00 * 1/15th = 666,67

(2) 10 000,00 * 2/15th = 1,333.33

(3) 10 000,00 * 3/15th = 2,000.00

(4) 10 000,00 * 4/15th = 2,666.67

(5) 10 000,00 – 6 666,67 = 3 333,33 (equal to 5/15th but used to close the depreciation)

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 07/02/2005
Depreciation duration: 5 years
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 611,11	611,11
01/01/2006 – 31/12/2006	9 388,89	(2) 1 277,78	1 888,89
01/01/2007 – 31/12/2007	8 111,11	(3) 1 944,44	3 833,33
01/01/2008 – 31/12/2008	6 166,67	(4) 2 611,11	6 444,44
01/01/2009 – 31/12/2009	3 555,56	(5) 3 277,78	9 722,22
01/01/2010 – 31/12/2010	277,78	(6) 277,78	10 000,00

(1) 10 000,00 * 1/15th * 11/12th = 611,11

(2) ( 10 000,00 * 1/15th * 1/12th ) + ( 10 000,00 * 2/15th * 11/12th ) = 55.56 + 1,222.22

(3) ( 10 000,00 * 2/15th * 1/12th ) + ( 10 000,00 * 3/15th * 11/12th ) = 111,11 + 1,833.33

(4) ( 10 000,00 * 3/15th * 1/12th ) + ( 10 000,00 * 4/15th * 11/12th ) = 166.67 + 2,444.44

(5) ( 10 000,00 * 4/15th * 1/12th ) + ( 10 000,00 * 5/15th * 11/12th ) = 222.22 + 3,055.56

(6) 10 000,00 – 9 722,22 = 277,78 (equal to 5/15th * 1/12th but used to close the depreciation)

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 02/07/2005 (corresponds to the 1st day of the week)
Depreciation duration: 3 years --> Depreciation end date: 03/02/2008
Prorata type: weeks

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 1 506,41	1 506,41
02/01/2006 – 31/12/2006	8 493,59	(2) 3 173,08	4 679,49
01/01/2007 – 30/12/2007	5 320,51	(3) 4 839,74	9 519,23
31/12/2007 – 28/12/2008	480,77	(4) 480,77	10 000,00

(1) 10 000,00 * 1/6th * 47/52th = 1 506,41

(2) (10 000,00 * 1/6th * 5/52th ) + ( 10 000,00 * 2/6th * 47/52th ) = 160.26 + 3,012.82

(3) ( 10 000,00 * 2/6th * 5/52th ) + ( 10 000,00 * 3/6th * 47/52th ) = 320.51 + 4,519.23

(4) 10 000,00 – 9 519,23 = 480,77 (equal to 10 000,00 * 3/6th * 5/52th but used to close the depreciation)

Distribution of the 2005 fiscal year charge on quarterly periods (1 quarter = 13 weeks)

Period	Number of weeks	Number of holding weeks	Depreciation charge
03/01/2005 – 03/04/2005	13	08	(5) 256,41
04/04/2005 – 03/07/2005	13	13	(6) 416,67
04/07/2005 – 02/10/2005	13	13	(7) 416,66
03/10/2005 – 01/01/2006	13	13	(8) 416,67
2005 fiscal year total			1 506,41

(5) (1 506,41 / 47 * 8) – 0 = 256,41
(6) (1 506,41 / 47 * 21) – 256,41 = 416,67
(7) (1 506,41 / 47 * 34) – 673,08 = 416,66
(8) (1 506,41 / 47 * 47) – 1 089,74 = 416,67

Distribution of the 2006 fiscal year charge on quarterly periods (1 quarter = 13 weeks)

Period	Number of weeks	Number of holding weeks	Depreciation charge
02/01/2006 – 02/04/2006	13	13	(1) 673,08
03/04/2006 – 02/07/2006	13	13	(2) 833,33
03/07/2006 – 01/10/2006	13	13	(3) 833,34
02/10/2006 – 31/12/2006	13	13	(4) 833,33
2006 fiscal year total			3 173,08

(1) ( 10 000,00 * 1/6th * 5/52th ) + ( 10 000,00 * 2/6th * 8/52th ) = 160.26 + 512,82

(2) ( 10 000,00 * 1/6th * 5/52th ) + ( 10 000,00 * 2/6th * 21/52th ) = (160,26 + 1 346,15) – 673,08

(3) ( 10 000,00 * 1/6th * 5/52th ) + ( 10 000,00 * 2/6th * 34/52th ) = (160,26 + 2,179.49) – 1,506.41

(4) ( 10 000,00 * 1/6th * 5/52th ) + ( 10 000,00 * 2/6th * 47/52th ) = (160,26 + 3012,82 ) – 2 339,75

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 07/02/2005
Depreciation duration: 3 years --> Depreciation end date: 31/01/2008
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 527,78	1 527,78
01/01/2006 – 31/12/2006	8 472,22	(2) 3 194,45	4 722,23
01/01/2007 – 31/12/2007	5 277,77	(3) 4 861,11	9 583,34
01/01/2008 – 31/12/2008	416,66	(4) 416,66	10 000,00

(1) 10 000,00 * 1/6th * 11/12th = 1,527.78

(2) ( 10 000,00 * 1/6th * 1/12th ) + ( 10 000,00 * 2/6th * 11/12th ) = 138.89 + 3,055.56

(3) ( 10 000,00 * 2/6th * 1/12th ) + ( 10 000,00 * 3/6th * 11/12th ) = 277,78 + 4,583.33

(4) 10 000,00 – 9 583,34 = 416,66 (equal to 10 000,00 * 3/6th * 1/12th but used to close the depreciation)

Distribution of the 2005 fiscal year charge on quarterly periods

Period	Number of months	Number of holding months	Depreciation charge
01/01/2005 – 31/03/2005	03	02	(5) 277,78
01/04/2005 – 30/06/2005	03	03	(6) 416,67
01/07/2005 – 30/09/2005	03	03	(7) 416,66
01/10/2005 – 31/12/2005	03	03	(8) 416,67
2005 fiscal year total			1 527,78

(5) (1 527,78 / 11 * 2) – 0 = 277,78
(6) (1 527,78 / 11 * 5) – 277,78 = 416,67
(7) (1 527,78 / 11 * 8) – 694,45 = 416,66
(8) (1 527,78 / 11 * 11) – 1 111,11 = 416,67

Distribution of the 2006 fiscal year charge on quarterly periods

Period	Number of months	Number of holding months	Depreciation charge
01/01/2006 – 31/03/2006	03	02	(1) 694,45
01/04/2006 – 30/06/2006	03	03	(2) 833,33
01/07/2006 – 30/09/2006	03	03	(3) 833,33
01/10/2006 – 31/12/2006	03	03	(4) 833,34
2006 fiscal year total			3 194,45

(1) ( 10 000,00 * 1/6th * 1/12th ) + ( 10 000,00 * 2/6th * 2/12th ) = 138,89 + 555,56 = 694,45

(2) ( 10 000,00 * 1/6th * 1/12th ) + ( 10 000,00 * 2/6th * 5/12th ) – 694,45 = 833,33

(3) ( 10 000,00 * 1/6th * 1/12th ) + ( 10 000,00 * 2/6th * 8/12th ) – 1,527.78 = 833,33

(4) 3 194,45 – 2 361,11 = 833,34

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

SO - Softy (Sum-of-Years Digits)

Thi declining depreciation method is used in various countries (United Kingdom, United States, Spain).
It is also accepted in French accounting.

Depreciation origin

Duration

As the depreciation rate is determined based on the sum of the data for each fiscal year, the duration must be expressed in whole years.

Rate

This declining rate cannot be entered by the user and is determined as follows:

Value of the year concerned / Sum of the yearly data for the depreciation duration

Example:
For a 5-year depreciation, the rate applied to the second year is 4/15th. Indeed:

- the sum of the data for the five years is: 5 + 4 + 3 + 2 + 1 = 15

- the value of the 2nd year equals 4

In case of depreciation start during a fiscal year or in case of a fiscal year with a 12-month difference, 2 depreciation rates can be applied upon same fiscal year.

Depreciation end date

It depends on the prorata temporis type.

If the prorata temporis is expressed in months:

Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end located at month end.

If the prorata temporis is expressed in weeks:

Depreciation end date = 1st day of the week (Monday) in whixh the depreciation start date is to be found + (depreciation duration * 52 weeks).
This leads to a depreciation end located on the last day of the week (Sunday)

Depreciation end date calculation examples:

Start date	Duration & Prorata	End date
01/08/2005	3 years, prorata in months	31/07/2008
07/02/2005	3 years, prorata in months	31/01/2008
01/08/2005	3 years, prorata in weeks	27/07/2008
07/02/2005	3 years, prorata in weeks	03/02/2008

Prorata temporis

In most cases, time is expressed in months.
An exception is made when the Depreciation schedule/Context is managed in weeks: time is then expressed in weeks, too.

A prorata temporis applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the fiscal year duration has a on-year or 52-week difference if the Depreciation schedule/Context is managed in weeks.
During the disinvestment fiscal year: the depreciation charge is calculated until the issue day if the fay specified in the issue date is the last one of the month; if not, the depreciation charge is calculated until the end of the month before the issue.
This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

If the Depreciation schedule/Context is managed in weeks, the depreciation charge is calculated until the end of the week (Sunday) in which the issue date is to be found. As indicated above, this rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

Afiscal year charge is calculated as follows:
Depreciation expenditure =(Depreciation value * Rate 1) * prorata temporis 1
+ (Depreciation value * Rate 2) * prorata temporis 2

Depreciation value = (Gross value – Residual value)
Rate 1 = Depreciation rate applied in fiscal year first part
Rate 2 = Potential depreciation rate applied in fiscal year second part
Prorata temporis 1 =
Number of months (or weeks) of the period [max (Fiscal year start date, Depreciation start date)
– min (End date of the application of Rate 1, Fiscal year end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)
Prorata temporis 2 =
Number of months (or weeks) of the period [Start date of the application of Rate 2 – min (Fiscal year end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)

Notes:

For instance: asset acquired on 07/01/2005 and depreciated over 5 years. The rates applied to the following fiscal years are:

Fiscal year	Rate 1	Rate 2
01/01/2005 - 31/12/2005	5/15th for 6 months
01/01/2006 - 31/12/2006	5/15th for 6 months	4/15thfor 6 months
01/01/2007 - 31/12/2007	4/15thfor 6 months	3/15thfor 6 months
01/01/2008 - 31/12/2008	3/15thfor 6 months	2/15thfor 6 months
01/01/2009 - 31/12/2009	2/15thfor 6 months	1/15thfor 6 months
01/01/2010 - 31/12/2010	1/15thfor 6 months

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied based on the following rule:

Period charge =

(Depreciation value * Rate 1 * Prorata 1) + (Depreciation value * Rate 2 * Prorata 2)
- Previous periods depreciation total

Prorata temporis 1 =
Number of months (or weeks) of the period [max (Fiscal year start date, Depreciation start date)
– min (End date of the application of Rate 1, Current period end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)
Prorata temporis 2 =
Number of months (or weeks) of the period [Start date of the application of Rate 2 – min (Current period end date, Depreciation end date, Issue date)]
/ 12 (or 52 if the Depreciation schedule/Context management is in weeks)

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/01/2005
Depreciation duration: 5 years
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 3 333,33	3 333,33
01/01/2006 – 31/12/2006	6 666,67	(2) 2 666,67	6 000,00
01/01/2007 – 31/12/2007	4 000,00	(3) 2 000,00	8 000,00
01/01/2008 – 31/12/2008	2 000,00	(4) 1 333,33	9 333,33
01/01/2009 – 31/12/2009	666,67	(5) 666,67	10 000,00

(1) 10 000,00 * 5/15th = 3,333.33

(2) 10 000,00 * 4/15th = 2,666.67

(3) 10 000,00 * 3/15th = 2,000.00

(4) 10 000,00 * 2/15th = 1,333.33

(5) 10 000,00 – 9,333.33 = 666.67 (equal to 1/15th but used to close the depreciation)

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 07/02/2005
Depreciation duration: 5 years
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 3 055,56	3 055 ,56
01/01/2006 – 31/12/2006	6 944,44	(2) 2 722,22	5 777,78
01/01/2007 – 31/12/2007	4 222,22	(3) 2 055,55	7 833,33
01/01/2008 – 31/12/2008	2 166,67	(4) 1 388,89	9 222,22
01/01/2009 – 31/12/2009	777,78	(5) 722,22	9 944,44
01/01/2010 – 31/12/2010	55,56	(6) 55,56	10 000,00

(1) 10 000,00 * 5/15th * 11/12th = 3,055.56

(2) ( 10 000,00 * 5/15th * 1/12th ) + ( 10 000,00 * 4/15th * 11/12th ) = 277.78 + 2,444.44

(3) ( 10 000,00 * 4/15th * 1/12th ) + ( 10 000,00 * 3/15th * 11/12th ) = 222.22 + 1,833.33

(4) ( 10 000,00 * 3/15th * 1/12th ) + ( 10 000,00 * 2/15th * 11/12th ) = 166.67 + 1,222.22

(5) ( 10 000,00 * 2/15th * 1/12th ) + ( 10 000,00 * 1/15th * 11/12th ) = 111.11 + 611.11

(6) 10 000,00 – 9 944,44 = 55,56 (equal to 1/15th* 1/12th but used to close the depreciation)

3rd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 02/07/2005 (corresponds to the 1st day of the week)
Depreciation duration: 3 years --> Depreciation end date: 03/02/2008
Prorata type: week

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
03/01/2005 – 01/01/2006	10 000,00	(1) 4 519,23	4 519,23
02/01/2006 – 31/12/2006	5 480,77	(2) 3 493,59	8 012,82
01/01/2007 – 30/12/2007	1 987,18	(3) 1 826,92	9 839,74
31/12/2007 – 28/12/2008	160,26	(4) 160,26	10 000,00

(1) 10 000,00 * 3/6th * 47/52th = 4,519.23

(2) ( 10 000,00 * 3/6th * 5/52th ) + ( 10 000,00 * 2/6th * 47/52th ) = 480,77 + 3,012.82

(3) ( 10 000,00 * 2/6th * 5/52th ) + ( 10 000,00 * 1/6th * 47/52th ) = 320.51 + 1,506.41

(4) 10 000,00 – 9,839.74 = 160.26 (equal to 10 000,00 * 1/6th * 5/52th but used to close the depreciation)

Distribution of the 2005 fiscal year charge on quarterly periods (1 quarter = 13 weeks)

Period	Number of weeks	Number of holding weeks	Depreciation charge
03/01/2005 – 03/04/2005	13	08	(5) 769,23
04/04/2005 – 03/07/2005	13	13	(6) 1 250,00
04/07/2005 – 02/10/2005	13	13	(7) 1 250,00
03/10/2005 – 01/01/2006	13	13	(8) 1 250,00
2005 fiscal year total			4 519,23

(5) (4 519,23 / 47 * 8) – 0 = 769,23
(6) (4 519,23 / 47 * 21) – 769,23 = 1 250,00
(7) (4 519,23 / 47 * 34) – 2 019,23 = 1 250,00
(8) (4 519,23 / 47 * 47) – 3 269,23 = 1 250 ,00

Distribution of the 2006 fiscal year charge on quarterly periods (1 quarter = 13 weeks)

Period	Number of weeks	Number of holding weeks	Depreciation charge
02/01/2006 – 02/04/2006	13	13	(1) 993,59
03/04/2006 – 02/07/2006	13	13	(2) 833,33
03/07/2006 – 01/10/2006	13	13	(3) 833,34
02/10/2006 – 31/12/2006	13	13	(4) 833,33
2006 fiscal year total			3 493,59

(1) ( 10 000,00 * 3/6th * 5/52th ) + ( 10 000,00 * 2/6th * 8/52th ) = 480,77 + 512,82

(2) ( 10 000,00 * 3/6th * 5/52th ) + ( 10 000,00 * 2/6th * 21/52th ) = (480.77 + 1 346,15) – 993.59

(3) ( 10 000,00 * 3/6th * 5/52th ) + ( 10 000,00 * 2/6th * 34/52th ) = (480.77 + 2,179.49) – 1,826.92

(4) ( 10 000,00 * 3/6th * 5/52th ) + ( 10 000,00 * 2/6th * 47/52th ) = (480.77 + 3,012.82) – 2,660.26

4th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 07/02/2005
Depreciation duration: 3 years --> Depreciation end date: 31/01/2008
Prorata type: month

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 4 583,33	4 583,33
01/01/2006 – 31/12/2006	5 416,67	(2) 3 472,23	8 055,56
01/01/2007 – 31/12/2007	1 944,44	(3) 1 805,56	9861,12
01/01/2008 – 31/12/2008	138,88	(4) 138,88	10 000,00

(1) 10 000,00 * 3/6th * 11/12th = 4,583.33

(2) ( 10 000,00 * 3/6th * 1/12th ) + ( 10 000,00 * 2/6th * 11/12th ) = 416.67 + 3,055.56

(3) ( 10 000,00 * 2/6th * 1/12th ) + ( 10 000,00 * 1/6th * 11/12th ) = 277.78 + 1,527.78

(4) 10 000,00 – 9 861,12 = (equal to 10 000,00 * 1/6th * 1/12th but used to close the depreciation)

Distribution of the 2005 fiscal year charge on quarterly periods

Period	Number of months	Number of holding months	Depreciation charge
01/01/2005 – 31/03/2005	03	02	(5) 833,33
01/04/2005 – 30/06/2005	03	03	(6) 1 250,00
01/07/2005 – 30/09/2005	03	03	(7) 1 250,00
01/10/2005 – 31/12/2005	03	03	(8) 1 250,00
2005 fiscal year total			4 583,33

(5) (4 583,33 / 11 * 2) – 0 = 833,33
(6) (4 583,33 / 11 * 5) – 833,33 = 1 250,00
(7) (4 583,33 / 11 * 8) – 2 083,33 = 1 250,00
(8) (4 583,33 / 11 * 11) – 3 333,33 = 1 250,00

Distribution of the 2006 fiscal year charge on quarterly periods

Period	Number of months	Number of holding months	Depreciation charge
01/01/2006 – 31/03/2006	03	02	(1) 972,23
01/04/2006 – 30/06/2006	03	03	(2) 833,33
01/07/2006 – 30/09/2006	03	03	(3) 833,33
01/10/2006 – 31/12/2006	03	03	(4) 833,34
2006 fiscal year total			3 472,23

(1) ( 10 000,00 * 3/6th * 1/12th ) + ( 10 000,00 * 2/6th * 2/12th ) = 416.67 + 555,56 = 972.23

(2) ( 10 000,00 * 3/6th * 1/12th ) + ( 10 000,00 * 2/6th * 5/12th ) – 972.23 = 833,33

(3) ( 10 000,00 * 3/6th * 1/12th ) + ( 10 000,00 * 2/6th * 8/12th ) – 1,805.56 = 833,33

(4) 3 472,23 – 2 638,89 = 833,34

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

UD - Declining balance

The declining depreciation method is used in the United Kingdom as well as in the USA.

Depreciation origin

It depends on the prorata temporis type specified by the user at depreciation schedule level.

If prorata = Month (Month) --> Start of the depreciation on the 1st day of the depreciation start date month. (1)
If prorata = ½ Month (Mid-Month) --> Start of the depreciationin the middle of the month of the depreciation start date . (2)
If prorata = ½ quarter (Mid-Quarter) -->Start of the depreciation in the middle of the depreciation start date quarter. (3)
If prorata = ½ Year (Half-Year) -->½ annuity is used in the acquisition fiscal year (4)

(1) No matter the day of the depreciation start date.
(2) No matter the day of the depreciation start date, event if it is the first day of the month.
(3) No matter the day of the depreciation start date, even if it is the first day of the quarter.
(4) No matter the day of the depreciation start date or the fiscal year duration.

Duration

The duration is expressed in years and hundredths of years.

Examples:

5 for 5 years
3,5 for 3 years and 6 months
6.66 for 6 years and 8 months

Rate

The depreciation rate cannot be entered by the user. It is automatically calculated based on an acceleration coefficient as follows:

( 1 / duration ) * acceleration coefficient

This acceleration coefficient must be spcified bu the user or define by associations (espacially if the mode itself is defined by associations). It can be modified by action Method change.

It corresponds to the decline coefficient applied to the French declining depreciation method. It can have value:
- 1,25
- 1,50
- 1,75
- 2

Depreciation end date

It depends on the prorata temporis type:

If prorata temporis = ½ year:

Depreciation end date = first day of the month of the Start date for the fiscal year following the acquisition fiscal year
+ (Depreciation duration - 0,5)

This leads to a last day of the month.

If prorata temporis = month:

Depreciation end date = first day of the month of the depreciation start date + Depreciation duration

This leads to a last day in the month.
If prorata temporis = ½ month:

Depreciation end date =
first day of the month of the depreciation start date + Depreciation duration + 0,5 month

This leads to 15 days of the month.
If prorata temporis = ½ quarter:

Depreciation end date =
first day of the quarter in which the depreciation start date is to be found + Depreciation duration + 0.5 quarter.

This leads to the middle of the quarter.

Depreciation end date calculation examples:

Start date	Duration	End date
01/01/2005	3 years and ½ year	30/06/2008
14/10/2005	3,25 and ½ year	30/09/2008
01/01/2005	5,33 and month	30/04/2010
01/01/2005	3 and ½ month	15/01/2008
08/11/2005	3.25 and ½ month	15/02/2009
01/01/2005	3 and ½ quarter	15/02/2008
08/12/2005	3 and ½ quarter	15/11/2008

Prorata temporis

The prorata temporis type can be specified by the user or must be defined by the associations if the depreciation method itself is defined by the associations. It can be modified by action Method change.

The possible values are as follows:

Prorata = month (Month)
Prorata = ½ month (Mid-Month)
Prorata = ½ quarter(Mid-Quarter)
Prorata = ½ year (Half-Year)

Depreciation charges

The depreciation expenditure equals the highest of both following values:

Net depreciation value * Depreciation rate * prorata temporis
Net depreciation value * (Holding duration for the fiscal year / Residual depreciation duration)

Notes:

- Net depreciation value = (Net value – Residual value)

- The residual depreciation value equals the duration of interval [fiscal year start date – depreciation end date]

- If the Depreciation end date is equal to the Fiscal yearend date and if the asset has not been issued before this depreciation end date, then the Fiscal yearcharge equals the Depreciationnet value.

-If the Depreciation net value is superior to 0 and if the residual depreciation duration equals 0 (this is the case when the Depreciation end date is inferior to the Fiscal year start date), then the Fiscal yearcharge equals the Net depreciation value in order to close the depreciation.

The disinvestment fiscal year charge is calculated depending on the prorata temporis type:

If Prorata = ½ year, the disinvestment fiscal year charge corresponds to the fiscal year charge * 50%.
This applies to the case where the asset is issued in its depreciation end fiscal year.
Ditto if the disinvestment fiscal year is different from 12 months.
If Prorata = Month, the charge is calculated until the end of the month that comes before the issue month or until the issue day if it corresponds to the last day of the month.
If Prorata = ½ month, the charge is calculated until the middle of the issue month. a ½ charge is thus retained for the issue month.
Ig Prorata = ½ quarter, the disinvestment fiscal year charge corresponds to the fiscal year charge * a percentage that can vary based on the fiscal year issue quarter:

- 12,50 % (1 ½ Quarter / 8) if the Issue date is to be found in the first quarter
- 37,50 % (3 ½ Quarter / 8) if the Issue date is to be found in the second quarter
- 62,50 % (5 ½ Quarter / 8) if the Issue date is to be found in the third quarter
- 87,50 % (7 ½ Quarter / 8) if the Issue date is to be found in the fourth quarter

This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

$..\FCT\SEEINFO$ If the method is changed during the fiscal year (revision of the duration, acceleration coefficient, prorata type, depreciation start date), the implementation systematically is the fiscal year start: the charge of the fiscal year is thus recalculated using the new method.

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied based on the following rule:

Prorata temporis = ½ year or month. In this case, the holding period starts on the 1st day of the month of the depreciation start date.

Period charge = Fiscal year charge
*( Σ p1 to pc (Number of holding months in the period )
/ Σ p1 to pf (Number of holding months in the period ) )
- Previous periods depreciation total
Prorata temporis 2 = ½ months or ½ quarter. In this case, the holding period starts:

- either in the middle of the month of the depreciation start date, if Prorata = ½ month,
- or in the middle of the quarter (i.e. the middle of the quarter 2nd month) in which the depreciation start date is to be found, if Prorata = ½ quarter.

Period charge = Fiscal year charge
* ( ∑ p1 to pc (Number of ½ holding months in the period)
/ ∑ p1 to pf (Number of ½ holding months in the period) )
- Previous period depreciation total

p1 to pc = of the 1st holding period in the fiscal year, until the current period included (1)
p1 to pf = of the 1st holding period in the fiscal year; until the last fiscal year holding period.

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. Thus, the retained period is the minimum one among the 3 following ones:
- depreciation end period if the Depreciation end date bellongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

$..\FCT\SEEINFO$ For this depreciation method, the period weight is not taken into account.

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/04/2006
Acceleration coefficient: 2
Depreciation duration: 5 years --> Rate: (1/5) * 2 = 40 %
Prorata temporis type: ½ year

The Depreciation end date determined by Sage X3 will be: 30/06/2011

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 2 000,00	2 000,00
01/01/2007 – 31/12/2007	8 000,00	(2) 3 200,00	5 200,00
01/01/2008 – 31/12/2008	4 800,00	(3) 1 920,00	7 120,00
01/01/2009 – 31/12/2009	2 880,00	(4) 1 152,00	8 272,00
01/01/2010 – 31/12/2010	1 728,00	(5) 1 152,00	9 424,00
01/01/2011 – 31/12/2011	576 ,00	(6) 576,00	10 000,00

(1) 10 000,00 * 40% * 50% ou 6/12th = 2 000,00

(2) 8 000,00 * 40% = 3 200,00

(3) 4 800,00 * 40% = 1 920,00

(4) 2 880,00 * 40% = 1 152,00 (equal to 2 880,00 * 12 / 30 = 1 152,00)

(5) 1 728,00 * 12 / 18 = 1 152,00 since > to 1 728,00 * 40% = 691,20

(6) 576,00 * 6 / 6 = 576,00

If this asset has been issued in 2010, irrespective of its issue date:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2010 – 31/12/2010	1 728,00	(7) 576,00	8 848,00

(7) 1 728,00 * 12 / 18 = 1 152,00 * 50% ou 6/12th = 576,00 (50% or 6/12th since a ½ issue fiscal year charge).

If this assets has not been issued in 2011, irrespective of the issue date:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2011 – 31/12/2011	576 ,00	(7) 288,00	9 712,00

(7) 576,00 * 6 / 6 = 576,00 * 50% = 288,00 (50% since a ½ issue fiscal year charge)

1st example (continued):

Depreciation schedule in case the fiscal years are divided into quarters

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10 000,00	2 000,00 0,00 (1) 666,67 (2) 666,66 (3) 666,67	2 000,00
01/01/2007 – 31/12/2007 Quarter 1 Quarter 2 Quarter 3 Quarter 4	8 000,00	3 200,00 800,00 800,00 800,00 800,00	5 200,00
01/01/2008 – 31/12/2008	4 800,00	1 920,00	7 120,00
01/01/2009 – 31/12/2009	2 880,00	1 152,00	8 272,00
01/01/2010 – 31/12/2010	1 728,00	1 152,00	9 424,00
01/01/2011 – 31/12/2011 Quarter 1 Quarter 2 Quarter 3 Quarter 4	576 ,00	576,00 (4) 288,00 (5) 288,00 0,00 0,00	10 000,00

(1) 2 000,00 * 3/9th = 666,67 ( 3/9th for there are 3 holding months for this quarter )

(2) 2 000,00 * 6/9th = 1 333,33 – 666,67= 666,66

(3) 2 000,00 * 9/9th = 2 000,00 - 1 333,33 = 666,67

(4) 576,00 * 3/6th = 288,00

(5) 576,00 * 6/6th = 576,00 – 288,00 = 288,00

$..\FCT\SEEINFO$ Had the fiscal year been divided into months (monthly order), the fiscal year charge distribution would have been carried out following the same pattern, i.e. by applying holding prorata expressed in months: the first depreciation charge would have been recorded in April 2006.

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/04/2006
Acceleration coefficient: 1,5
Depreciation duration: 3 years --> Rate: (1/3) * 1,5 = 50 %
Prorata temporis type: ½ quarter

The Depreciation end date determined by Sage X3 will be: 15/05/2009

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 3 125,00	3 125,00
01/01/2007 – 31/12/2007	6 875,00	(2) 3 437,50	6 562,50
01/01/2008 – 31/12/2008	3 437,50	(3) 2 500,00	9 062,50
01/01/2009 – 31/12/2009	937,50	(4) 937,50	10 000,00

(1) 10 000,00 * 50% * 5/8th = 3 125,00 ( 5/8th = 5 ½ holding quarters out of 8 )

(2) 6 875,00 * 50% = 3 437,50

(3) 3 437,50 * 8 / 11th = 2 500,00 since > to 3 437,50 * 50% = 1 718,75

(4) 937,50 * 3/3rd = 937,50

If this asset has not been issued in the first quarter 2008, irrespective of the issue date:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2008 – 31/12/2008	3 437,50	(5) 312,50	6 875,00

(5) 3 437,50 * 8 / 11th = 2 500,00 * 12,50% = 312,50 (12,50% = 1 ½ quarter / 8 ½ quarters)

If this asset has not been issued in the third quarter 2009, irrespective of the issue date:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2009 – 31/12/2009	937,50	(6) 585,94	9 648,44

(6) 937.50 * 3 / 11th = 937.50 * 62.5% = 585.94 (62.5% = 5 ½ quarter / 8 ½ quarters)

2nd example (continued):

Depreciation schedule in case the fiscal years are divided into quarters

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10 000,00	3 125,00 0,00 (1) 625,00 (2) 1 250,00 (3) 1 250,00	3 125,00
01/01/2007 – 31/12/2007	6 875,00	3 437,50	6 562,50
01/01/2008 – 31/12/2008	3 437,50	2 500,00	9 062,50
01/01/2009 – 31/12/2009 Quarter 1 Quarter 2 Quarter 3 Quarter 4	937,50	937,50 (4) 625,00 (5) 312,50 0,00 0,00	10 000,00

(1) 3 125,00 * 3/15th = 625,00 ( 3/15th since there are 3 ½ holding monthsfor this quarter )

(2) 3 125,00 * 9/15th = 1 875,00 – 625,00= 1 250,00

(3) 3 125,00 * 15/15th = 3 125,00 - 1 875,00 = 1 250,00

(4) 937,50 * 6/9th = 625,00 ( 6/9th for there are 6 ½ holding months for this quarter and 9 ½ months to reach the depreciation end date )

(5) 937,50 * 9/9th = 937,50 – 625,00 = 312,50

$..\FCT\SEEINFO$ Had the fiscal year been divided into months (monthly order), the fiscal year charge distribution would have been carried out following the same pattern, i.e. by applying holding prorata expressed in ½ months:

05/2006 = 3 125,00 * 1/15th = 208,33
06/2006 = 3 125,00 * 3/15th = 625,00 – 208,33 = 416,67
…

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/04/2006
Acceleration coefficient: 1,5
Depreciation duration: 3 years --> Rate: (1/3) * 1,5 = 50 %
Prorata temporis type: ½ month

The Depreciation end date determined by Sage X3 will be: 15/04/2009

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 3 541,67	3 541,67
01/01/2007 – 31/12/2007	6 458,33	(2) 3 229,17	6 770,84
01/01/2008 – 31/12/2008	3 229,16	(3) 2 499,99	9 270,83
01/01/2009 – 31/12/2009	729,17	(4) 729,17	10 000,00

(1) 10 000,00 * 50% * 17/24th = 3 541,67 (17/24th = 17 ½ holding months out of 24 )

(2) 6 458,33 * 50% = 3 229,17

(3) 3 229,16 * 24 / 31st = 2 499,99 since > to 3 229,16 * 50% = 1 614,58

(4) 729,17 * 7/7th = 729,17

If this asset has been issued on 03/24/2008:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2008 – 31/12/2008	3 229,16	(5) 520,83	7 291,67

(5) 3 229,16 * 5 / 31st = 520,83 (5 / 31st = 5 ½ holding months in 2008)

If this asset has been issued on 14.07.09:

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2009 – 31/12/2009	729,17	(6) 729,17	10 000,00

(6) Issue date 07/14/2009 > Depreciation end date 04/15/2009, so there is no prorata temporis to be applied due to the issue.

3rd example (continued):

Depreciation schedule in case the fiscal years are divided into quarters

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10 000,00	3 541,67 0,00 (1) 1 041,67 (2) 1 250,00 (3) 1 250,00	3 541,67
01/01/2007 – 31/12/2007	6 458,33	3 229,17	6 770,84
01/01/2008 – 31/12/2008	3 229,16	2 499,99	9 270,83
01/01/2009 – 31/12/2009 Quarter 1 Quarter 2 Quarter 3 Quarter 4	729,17	729,17 (4) 625,00 (5) 104,17 0,00 0,00	10 000,00

(1) 3 541,67 * 5/17th = 1 041,67 (5/17th for there are 5 ½ holding months for this quarter )

(2) 3 541,67 * 11/17th = 2 291,67 – 1 041,67= 1 250,00

(3) 3 541,67 * 17/17th = 3 541,67 - 2 291,67 = 1 250,00

(4) 729,17 * 6/7th = 625,00 (6/7th for there are 6 ½ holding months for thos quarter)

(5) 729,17 * 7/7th = 729,17 – 625,00 = 104,17

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Depreciation schedule revision
Examples

UL - Straight line

The straight-line depreciation method is used in the United Kingdom as well as in the USA.

Depreciation origin

It depends on the prorata temporis type specified by the user at depreciation schedule level.

If prorata = Month (Month) --> Start of the depreciation on the first day of the month of the depreciation start date. (1)
If prorata = ½ Month (Mid-Month) --> Start of the depreciation in the middle of the month of the depreciation start date. (2)
If prorata = ½ quarter(Mid-Quarter) --> Start of the depreciation in the middle of the quarter of the depreciation start date. (3)
If prorata = ½ Year (Half-Year) --> ½ annuity is used in the acquisition fiscal year (4)

Duration

The duration is expressed in years and hundredths of years.

Rate

The depreciation rate cannot be entered by the user. It is automatically calculated as follows: 1 / duration

Depreciation end date

It depends on the prorata temporis type:

If prorata temporis = ½ year:

Depreciation end date = first day of the month of the Start date for the fiscal year following the acquisition fiscal year
+ (Depreciation duration – 0,5)
This leads to a last day in the month.

If prorata temporis = month:

Depreciation end date = first day of the month of the depreciation start date + Depreciation duration

This leads to a last day in the month.

If prorata temporis = ½ month:

Depreciation end date =
first day of the month of the depreciation start date + Depreciation duration + 0,5 month

This leads to 15 days of the month.

If prorata temporis = ½ quarter:

Depreciation end date =
first day of the quarter in which the depreciation start date is to be found + Depreciation duration + 0.5 quarter

This leads to the middle of the quarter.

Depreciation end date calculation examples:

Start date	Duration	End date
01/01/2005	3 years and ½ year	30/06/2008
14/10/2005	3,25 and ½ year	30/09/2008
01/01/2005	5,33 and month	30/04/2010
01/01/2005	3 and ½ month	15/01/2008
08/11/2005	3.25 and ½ month	15/02/2009
01/01/2005	3 and ½ quarter	15/02/2008
08/12/2005	3 and ½ quarter	15/11/2008

Prorata temporis

The possible values are as follows:

Prorata = month (Month)
Prorata = ½ month (Mid-Month)
Prorata = ½ quarter(Mid-Quarter)
Prorata = ½ year (Half-Year)

Depreciation charges

The charge is equal to:

Depreciation value * Depreciation rate * prorata temporis (1)

Notes:

(1) The prorata temporis is expressed either in ½ year, or in month, in ½ month, or in ½ quarter.

- Depreciation value = (Gross value – Residual value)
- If the Depreciation end date is equal to the Fiscal year enddate and if the asset is not issued before this depreciation end date, then the Fiscal yearcharge = Net depreciation value.
-If the Net depreciation value is superior to 0 and if the residual depreciation duration is equal to 0 (this is the case when the Depreciation end date is inferior to the fiscal year start date), then the Fiscal yearcharge = Net depreciation value so as to close the depreciation.

The disinvestment fiscal year charge is calculated depending on the prorata temporis type:

If Prorata = ½ year, the disinvestment fiscal year charge corresponds to the fiscal year charge * 50%.
This applies to the case where the asset is issued in its depreciation end fiscal year.
Ditto if the disinvestment fiscal year is different from 12 months.
If Prorata = Month, the charge is calculated until the end of the month that comes before the issue month or until the issue day if it corresponds to the last day of the month.
If Prorata = ½ month, the charge is calculated until the middle of the issue month. a ½ charge is thus retained for the issue month.
If Prorata = ½ quarter, the disinvestment fiscal year charge corresponds to the fiscal year charge * a percentage that can vary based on the fiscal year issue quarter:

- 12,50 % (1 ½ Quarter / 8) if the Issue date is to be found in the first quarter
- 37,50 % (3 ½ Quarter / 8) if the Issue date is to be found in the second quarter
- 62,50 % (5 ½ Quarter / 8) if the Issue date is to be found in the third quarter
- 87,50 % (7 ½ Quarter / 8) if the Issue date is to be found in the fourth quarter

This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. The distribution rule is different based on the applied prorata temporis:

If prorata temporis = ½ year or month.
In this case, the holding period starts on the 1st day of the month of the depreciation start date.

Period charge = Fiscal year charge
*( ∑ p1 to pc (Number of holding months in the period)
/ ∑ p1 to pf (Number of holding months in the period) )
- Previous period depreciation total

If prorata temporis = ½ month or ½ quarter.
In this case, the holding period starts:

- either in the middle of the month of the depreciation start date, if Prorata = ½ month,
- or in the middle of the quarter (i.e. the middle of the quarter 2nd month) in which the depreciation start date is to be found, if Prorata = ½ quarter.

Period charge = Fiscal year charge
* ( ∑ p1 to pc (Number of ½ holding month in the period)
/ ∑ p1 to pf (Number of ½ holding month in the period) )
- Previous period depreciation total

p1 to pc = of the 1st holding period in the fiscal year, until the current period included (1)
p1 to pf = of the 1st holding period in the fiscal year; until the last fiscal year holding period.

$..\FCT\SEEINFO$ For this depreciation method, the period weight is not taken into account.

Depreciation schedule revision

If a method change is decided during the acquisition fiscal year (fiscal year in which the depreciation start date is to be found):

- the depreciation method remains Straight line
-the fiscal year charge is calculated again based on the new characteristics
- unclosed periods will "naturally" absorb the variance in the fiscal year charge
If a method change is decided during a fiscal year that takes places after the acquisition fiscal year or if there is a revaluation of the depreciation value or if an impairment loss is recorded:
- the depreciation method changes from Straight line to Residual,
- except for the impairment loss, which triggers a revision of the schedule at the start of the following period, the other possible actions (method change, update of the depreciation basis, revaluation) provoke a revision of the schedule at the start of the current period.
- The fiscal year charges will be equal to:

Closed period deprecitation total
+
"Residual" fiscal year charge calculated following the revision of the schedule

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 14/02/2005
Depreciation duration: 7 years --> Rate: (1/7) = 14,28571 %
Prorata temporis type: ½ year --> Depreciation end date: 30/06/2012

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 714,29	714 ,29
01/01/2006 – 31/12/2006	9 285,71	(2) 1 428,57	2 142,86
01/01/2007 – 31/12/2007	7 857,14	(2) 1 428,57	3 571,43
01/01/2008 – 31/12/2008	6 248,57	(2) 1 428,57	5 000,00
01/01/2009 – 31/12/2009	5 000,00	(2) 1 428,57	6 428,57
01/01/2010 – 31/12/2010	3 571,43	(2) 1 428,57	7 857,14
01/01/2011 – 31/12/2011	2 142,86	(2) 1 428,57	9 285,71
01/01/2012 – 31/12/2012	714,29	(3) 714,29	10 000,00

(1) (10 000,00 * 14,28571%) / 2 = 714,29
(2) 10 000,00 * 14,28571% = 1 428,57
(3) 10 000,00 – 9 285,71 = 714,29

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 14/02/2005
Depreciation duration: 7 years --> Rate: (1/7) = 14,28571 %
Prorata temporis type: month --> Depreciation end date: 31/01/2012

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 309,52	1 309,52
01/01/2006 – 31/12/2006	8 690,48	(2) 1 428,57	2 738,09
01/01/2007 – 31/12/2007	7 261,91	(2) 1 428,57	4 166,66
01/01/2008 – 31/12/2008	5 833,34	(2) 1 428,57	5 595,23
01/01/2009 – 31/12/2009	4 404,77	(2) 1 428,57	7 023,80
01/01/2010 – 31/12/2010	2 976,20	(2) 1 428,57	8 452,37
01/01/2011 – 31/12/2011	1 547,63	(2) 1 428,57	9 880,94
01/01/2012 – 31/12/2012	119,06	(3) 119,06	10 000,00

(1) 10 000,00 * 14,28571% * 11/12 = 1 309,52
(2) 10 000,00 * 14,28571% = 1 428,57
(3) 10 000,00 – 9 880,94 = 119,06

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 14/02/2005
Depreciation duration: 7 years --> Rate: (1/7) = 14,28571 %
Prorata temporis type: ½ month --> Depreciation end date: 15/02/2012

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10 000,00	(1) 1 250,00 (4) 178,57 (5) 357,14 (6) 357,15 (7) 357,14	1 250,00
01/01/2006 – 31/12/2006	8 750,00	(2) 1 428,57	2678,57
01/01/2007 – 31/12/2007	7 321,43	(2) 1 428,57	4 107,14
01/01/2008 – 31/12/2008	5 892,86	(2) 1 428,57	5 535,71
01/01/2009 – 31/12/2009	4 464,29	(2) 1 428,57	6 964,28
01/01/2010 – 31/12/2010	3 035,72	(2) 1 428,57	8 392,85
01/01/2011 – 31/12/2011	1 607,15	(2) 1 428,57	9 821,42
01/01/2012 – 31/12/2012	178,58	(3) 178,58	10 000,00

(1) 10 000,00 * 14,28571% * 21 ½ month /24 ½ month = 1 250,00
(2) 10 000,00 * 14,28571% = 1 428,57
(3) 10 000,00 – 9 821,42 = 178,58
(4) 1 250,00 * 3/21 = 178,57 (3/21 for the asset has been kept for 3 ½ months during this quarter)
(5) 1 250,00 * 9/21 = 535,71 – 178,57 = 357,14
(6) 1 250,00 * 15/21 = 892,86 – 535,71 = 357,15
(7) 1 250,00 * 21/21 = 1 250,00 – 892,86 = 357,14

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

BD - Belgian declining rate

It is the declining depreciation method applied based on Belgian rules. This depreciation method is optional: if a Belgian company does not choose this method, it will only be able to apply the straight-line method.

Depreciation origin

In cases where option Prorata temporis in months or Prorata temporis in days has been specified at method setup level, the declining depreciation origin is the 1st day of the month entered in the depreciation start date.
If no prorata is entered, a complete annuity will be retained for the acquisition fiscal year.

Duration

It must be entered by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Rate

The rate that can be applied to the declining depreciationcalculation is obtained by multiplying the straight-line depreciation rate corresponding to the standard use duration of the fixed asset by a decline coefficient specified by the user: it must be superior to 1 and inferior or equal to 2.

Declining depreciation rate = 1 / duration * decline coefficient

Notes:

The entered declining coefficient must be expressed with a maximum of 2 decimals.
The calculated depreciation rate is rounded to 2 decimals.
The user is free to determine the declining depreciation rate they want to apply: the rate can thus be forced by the user; it can be forced for a year and calculated for others.
When forced, it must be superior to the straight-line rate and yet inferior to the double of the straight-line rate.

Depreciation end date

The depreciation end date is dependent onoption Prorata temporis in months or Prorata temporis in days,entered at method setup level:

If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end corresponding to the last day of the month.

Example 1:

- Depreciation start date: 14/07/2005
- Duration: 5 years
- Depreciation end date: 30/06/2010

Example 2:

- Depreciation start date: 02/05/2005
- Duration: 6,66 years
- Depreciation end date: 30/09/2011

If the prorata temporis is expressed in days:
Depreciation end date = depreciation start date + depreciation duration.
This leads to a depreciation end to be found at week end.

Example 3:

- Depreciation start date: 14/07/2005
- Duration: 5 years
Depreciation end date: 13/07/2010
If no prorata is applied:
Depreciation end date = 1st day of the acquisition fiscal year + depreciation duration.
This leads to a depreciation end date corresponding to the last day of the month.

Example 4:

- Depreciation start date: 03/02/2005
- Duration: 5 years
Depreciation end date: 31/12/2009

Prorata temporis

Time is expressed in months.

When the choice of applying a prorata temporis is specified via option Prorata temporis in months available at method setup level:

A prorata temporis will be applied to determine the 1st fiscal year depreciation expenditure in case the depreciation origin is not the 1st day of the fiscal year, or in the case of a fiscal year different from 12 months.
A prorata temporis will be applied to determine the disinvestment fiscal year charge: The depreciation expenditure is calculated until the end of the month the precedes the issue (if the issue date is not the end of the month and the prorata is determined in months) or until the issue date if it corresponds to the last day of the month or if the prorata temporis is determined in days. This rule can be modified by Issue rules: No depreciation expenditure on issue day, Prevous fiscal year end issue and Current fiscal year end issue.

In case the company has not specified if a prorata temporis should be applied:

The depreciation expanditure of the 1st fiscal year will be equal to a complete annuity.
No depreciation expenditure will be calculated for the disinvestment fiscal year.
This rule can be modified byIssue rules: Current fiscal year end issue.

Whether the application of a prorata temporis is specified or not:

A prorata temporis will be applied to determine the depreciation expenditure for a fiscal year different from 12 months.

Depreciation charges

The 1st fiscal year charge (1) equals:
Depreciation value * declining rate * prorata temporis expressed in months or in days

A Prorata temporis, either in months or in days, is applied when the option is specified at depreciation method level and for a fiscal year different from 12 months.
The number of holding months will be different from 12 in the following situations:

- The Depreciation start date is superior to the fiscal year start date
- The fiscal year Durationdiffers from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]
The depreciation expenditure for the following fiscal years (1) equals:
Fiscal year start net depreciation value * declining rate * prorata temporis expressed in months or in days

A Prorata temporis, either in months or in days, is applied when the option is specified at depreciation method level and for a fiscal year different from 12 months.
The number of holding months will be different from 12 in the following situations:

- The fiscal year Duration is different from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

The above mentioned calculation is replaced with the following one:
Depreciation value * straight-line rate
if the obtained amount is superior to :
Fiscal year start net depreciation value * declining rate

A Prorata temporis, either in months or in days, is applied to the retined value when the option is specified at depreciation method level and for a fiscal year different from 12 months.
The number of holding months will be different from 12 in the following situations:

- The fiscal year Durationis different from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

(1): a declining annuity must not exceed 40% of the asset Gross value: if applying the rate should lead to this overrun, the fiscal year charge would be restricted to this limit.

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is carried out based on the following algorithms:

Period charge pc =

Fiscal year charge *
( Σ p1 to pc ( (Period weight / Number of months or days in the period) * Number of holding months or days in the period )
/
Σ p1 to pf ( (Period weight / Number of months or days in the period) * Number of holding months or days in the period ) )
-
Previous periods depreciation total
p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)

p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/06/2005
Depreciation duration: 5 years, Declining coefficient: 1,5 --> Rate: 30 %
Special feature: no prorata temporis is applied

Depreciation end date: 31/12/2009

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 3 000,00	3 000,00
01/01/2006 – 31/12/2006	7 000,00	2 100,00	5 100,00
01/01/2007 – 31/12/2007	4 900,00	(2) 2 000,00	7 100,00
01/01/2008– 31/12/2008	2 900,00	2 000,00	9 100,00
01/01/2009 – 31/12/2009	900,00	(3) 900,00	10 000,00

(1) 10 000,00 * 30% = 3 000,00 (no prorata temporis is applied)

(2) 10 000,00 * 20% = 2 000,00 > 4 900,00 * 30% = 1 470,00

(3) The Depreciation end date is to be found in this fiscal year; the Fiscal year chargeis thus equal to the Net depreciation value.

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years, Declining coefficient: 2 --> Rate: 40 %
Special feature: option Prorata temporisin months is applied
Depreciation end date: 31/10/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 31/12/2006	9 333,33	3 733,33	4 400,00
01/01/2007 – 31/12/2007	5 600,00	2 240,00	6 640,00
01/01/2008– 31/12/2008	3 360,00	(2) 2 000,00	8 640,00
01/01/2009 – 31/12/2009	1 360,00	(3) 1 360,00	10 000,00
01/01/2010 – 31/12/2010	0,00	(4) 0,00	10 000,00

(1) 10 000,00 * 40% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) 10 000,00 * 20% = 2 000,00 > 3 360,00 * 40% = 1 344,00

(3) 10 000,00 * 20% = 2 000,00 set to the value of the net depreciation value, i.e. 1 360,00

(4) Though the depreciation end date is located in this fiscal year, the depreciation is nevertheless closed in the previous fiscal year.

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/01/2005
Depreciation duration: 5 years, Declining coefficient: 2 --> Rate: 40 %
Special feature: option Prorata temporisin months is applied
Depreciation end date: 31/12/2009

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 4 000,00	4 000,00
01/01/2006 – 31/12/2006	6 000,00	2 400,00	6 400,00
01/01/2007 – 31/12/2007	3 600,00	(2) 2 000,00	8 400,00
01/01/2008– 31/12/2008	1 600,00	(3) 1 600,00	10 000,00
01/01/2009 – 31/12/2009	0,00	(4) 0,00	10 000,00

(1) 10 000,00 * 40% * 12/12th for the asset is held for 12 months during this 1st fiscal year.

(2) 10 000,00 * 20% = 2 000,00 > 3 600,00 * 40% = 1 440,00

(3) 10 000,00 * 20% = 2 000,00 set to the value of the net depreciation value, i.e. 1,600.00

(4) Though the depreciation end date is located in this fiscal year, the depreciation is nevertheless closed in the previous fiscal year.

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/01/2005
Depreciation duration: 5 years, Declining coefficient: 2 --> Rate: 40 %
Special feature: option Prorata temporisin months is applied
Depreciation end date: 31/12/2009
Asset issue date: 30/06/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 4 000,00	4 000,00
01/01/2006 – 31/12/2006	6 000,00	2 400,00	6 400,00
01/01/2007 – 31/12/2007	3 600,00	(2) 2 000,00	8 400,00
01/01/2008– 31/12/2008	1 600,00	(3) 800,00	9 200,00

(1) 10 000,00 * 40% * 12/12th for the asset is held for 12 months during this 1st fiscal year.

(2) 10 000,00 * 20% = 2 000,00 > 3 600,00 * 40% = 1 440,00

(3) 10 000,00 * 20% = 2 000,00 set to the value of the net depreciation value, i.e. 1,600.00 * 6/12th = 800,00

5th example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/02/2005
Depreciation duration: 4 years, Declining coefficient: 2 --> Rate: 50 %
Special feature: no prorata temporis is applied
Depreciation end date: 31/12/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 4 000,00	4 000,00
01/01/2006 – 31/12/2006	6 000,00	(2) 3 000,00	7 000,00
01/01/2007 – 31/12/2007	3 000,00	(3) 2 500,00	9 500,00
01/01/2008– 31/12/2008	500,00	(4) 500,00	10 000,00

(1) 10 000,00 * 50% * 12/12th = 5 000,00 > Gross value 10 000,00 * 40% = 4 000,00

(2) 6 000,00 * 50% = 3 000,00

(3) 10 000,00 * 25% = 2 500,00 > 3 000,00 * 50% = 1 500,00

(4) 10 000,00 * 25% = 2,500.00 set to the value of the net depreciation value, i.e. 500.00

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

BL - Belgian linear

It is the straight-line depreciation method applied based on Belgian rules. For some fixed assets, it is possible to carry out an annual depreciation equal to the double of the standard straight-line annuity.

Depreciation origin

The depreciation origin is dependent on the application or not of option Prorata temporis and sometimes on the selected prorata type:
- If option Prorata temporis in months is selected, the origin is the 1st day of the month entered in the depreciation start date .
- If option Prorata temporis in days is selected, the origin is the day entered in the depreciation start date.
- If no prorata is applied, a complete annuity is retained for the acquisition fiscal year.

Duration

The user can specify either the duration, either the rate.
When the duration is specified by the user, Sage X3automatically determines the depreciation rate as well as the depreciation end date based on this duration.
When the rate is entered, the depreciation duration is automatically determined based on the rate entered.

The duration is expressed in years and hundredths of years.
For instance: 6,66 or 6,67 for a duration of 6 years 2/3.

Rate

The rate can be entered by the user.
In this case, Sage X3 determines the depreciation duration based on the rate entered. This determined duration will be used to calculate the depreciation end date.

In the case when the depreciation rate is not specified by the user, Sage X3 will determine it as follows: 1 / duration with a rounding on the 2nd decimal.

Via the application of a Specific rule at depreciation method level, the user can select to double the straight-line depreciation on some fixed assets during a maximum of 3 successive fiscal years. When this choice is specified on the 1st fiscal year, it is automatically renewed on the 2nd and 3rd fiscl years.
This renewal can be cancelled by action Method change.

Depreciation end date

The depreciation end date is dependent on option Prorata temporis in months or Prorata temporis in days specified at method setup level:

If the prorata temporis is expressed in months:
Depreciation end date = 1st day of the month entered in the depreciation start date + depreciation duration in months.
This leads to a depreciation end corresponding to the last day of the month.

If the prorata temporis is expressed in days:
Depreciation end date = depreciation start date + depreciation duration.
If no prorata is applied:
Depreciation end date = 1st day of the acquisition fiscal year + depreciation duration.
This leads to a depreciation end date corresponding to the last day of the month.

Prorata temporis

The time is expressed in months or in days depending on the selection specified by the user.

When option Prorata temporis in months or Prorata temporis in days has been specified at method setup level:

A prorata temporis will be applied to determine the 1st fiscal year depreciation expenditure in case the depreciation origin is not the 1st day of the fiscal year, or in the case of a fiscal year different from 12 months.
A prorata temporis will be applied to determine the disinvestment fiscal year charge: The depreciation expenditure is calculated until the end of the month the precedes the issue (if the issue date is not the end of the month and the prorata is determined in months) or until the issue date if it corresponds to the last day of the month or if the prorata temporis is determined in days. This rule can be modified by Issue rules: No depreciation expenditure on issue day, Prevous fiscal year end issue and Current fiscal year end issue.

In case the company has not specified if a prorata temporis should be applied:

The depreciation expanditure of the 1st fiscal year will be equal to a complete annuity.
No depreciation expenditure will be calculated for the disinvestment fiscal year.
This rule can be modified byIssue rules: Current fiscal year end issue.

Whether the application of a prorata temporis is specified or not:

A prorata temporis will be applied to determine the depreciation expenditure for a fiscal year different from 12 months.

Depreciation charges

The fiscal year charge equals:

Depreciation value * straight-line rate * prorata temporis * 2 if the depreciation doubling has been specified

A Prorata temporisexpressed in months or in days is applied when the option is specified at depreciation method level and for a fiscal year different from 12 months.
The number of holding months will be different from 12 in the following situations:
- The Depreciation start date is superior to the fiscal year start date
- The fiscal year Durationdiffers from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

$..\FCT\SEEINFO$ If the user has retained the straight-line depreciation doubling, returning to a standard straight-line depreciation is carried out on the net depreciation value.
The fiscal year charge equals:

Net depreciation value / Residual depreciation duration * prorata temporis

A Prorata temporisexpressed in months or in days is applied when the option is specified at depreciation method level and for a fiscal year different from 12 months.
The number of holding months will be different from 12 in the following situations:
- The fiscal year Duration differs from 12 months
- The seet Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

- If the depreciation end date determined by Sage X3 is inferior or equal to the fiscal year end date, the fiscal year charge is automatically loaded with the net depreciation value in order to close the depreciation.

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =

p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/06/2005
Depreciation duration: 5 years --> Rate: 20 %
Special feature: no prorata temporis is applied

Depreciation end date: 31/12/2009

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 2 000,00	2 000,00
01/01/2006 – 31/12/2006	8 000,00	2 000,00	4 000,00
01/01/2007 – 31/12/2007	6 000,00	2 000,00	6 000,00
01/01/2008– 31/12/2008	4 000,00	2 000,00	8 000,00
01/01/2009 – 31/12/2009	2 000,00	2 000,00	10 000,00

(1) 10 000,00 * 20% = 2,000.00 (no prorata temporis is applied)

$..\FCT\SEEINFO$ If the asset has been issued on 05/14/2008, the 2008 fiscal year charge will be equal to 0 for choosing not to apply a prorata temporis results in not calculating any depreciation for the issue fiscal year.

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years --> Rate: 20 %
Special feature: application of a prorata temporis in months
Depreciation end date: 31/10/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 333,33	333,33
01/01/2006 – 31/12/2006	9 666,67	2 000,00	2 333,33
01/01/2007 – 31/12/2007	7 666,67	2 000,00	4 333,33
01/01/2008– 31/12/2008	5 666,67	2 000,00	6 333,33
01/01/2009 – 31/12/2009	3 666,67	2 000,00	8 333,33
01/01/2010 – 31/12/2010	1 666,67	(2) 1 666,67	10 000,00

(1) 10 000,00 * 20% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) Fiscal year charge = Net depreciation value for the Depreciation end date < Fiscal year end date

Note:
If the asset had been issued on 05/14/2008, the 2008 fiscal year charge would be equal to:

10 000,00 * 20% * 4 / 12th = 666,67

since applying a prorata temporis in months results in calculating a depreciation expenditure until the last day of the month, or for this example the month that precedes the issue.

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years --> Rate: 20 %
Special feature: application of a prorata temporis in days
Depreciation end date: 04/11/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 312,33	312,33
01/01/2006 – 31/12/2006	9 687,67	2 000,00	2 312,33
01/01/2007 – 31/12/2007	7 687,67	2 000,00	4 312,33
01/01/2008– 31/12/2008	5 687,67	2 000,00	6 312,33
01/01/2009 – 31/12/2009	3 687,67	2 000,00	8 312,33
01/01/2010 – 31/12/2010	1 687,67	(2) 1 687,67	10 000,00

(1) 10 000,00 * 20% * 57/365 for the asset is held only for 57 days during this 1st fiscal year.

(2) Fiscal year charge = Net depreciation value for the Depreciation end date < Fiscal year end date

$..\FCT\SEEINFO$ If the asset had been issued on 05/14/2008, the 2008 fiscal year charge would be equal to:

10 000,00 * 20% * 135 days / 366 jours = 737,70

since applying a prorata temporis in days results in calculating a depreciation expenditure until the issue day.

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years --> Rate: 20 %
Particularity no.1: no prorata temporis is applied
Particularity no.2: the company chose to double the straight-line depreciation expenditure on the first 2 fiscal years
Depreciation end date: 31/12/2009

Fiscal year	Net value	Fiscal year charge	Fiscal year end total
01/01/2005 – 31/12/2005	10 000,00	(1) 4 000,00	4 000,00
01/01/2006 – 31/12/2006	6 000,00	(2) 4 000,00	8 000,00
01/01/2007 – 31/12/2007	2 000,00	(3) 666,67	8 666,67
01/01/2008– 31/12/2008	1 333,33	666,67	9 333,34
01/01/2009 – 31/12/2009	666,66	666,66	10 000,00

(1) 10 000,00 * 20% * 2 (no prorata temporis is applied and the straight-line depreciation expenditure is doubled)

(2) 10 000,00 * 20% * 2 (the straight-line depreciation expenditure is doubled)

(3) Net value 2 000,00 / 3 years = 666,67 taking into account the return to a standard situation after doubling the straight-line depreciation.

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

DE - Spanish declining

It is the declining depreciation method applied based on Spanish rules: this depreciation method meets the Spanish accounting and finance standards.
It differs from the Spanish mixed declining depreciation method as the depreciation schedule end when the depreciation end date is detected.

Depreciation origin

The declining depreciation origin is the day entered in the depreciation start date.

Duration

It must be entered by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Notes:
For this depreciation method, Sage X3will round on the 2nd decimal all durations entered or imported on more than 2 decimals. Ditto for residual durations calculated within the framework if intra-group sales.

Rate

The rate that can be applied to the declining depreciation calculation can neither be entered, not determined by field associations.
It is automatically determined by Sage X3by multiplying the straight-line depreciation rate corresponding to the standard use duration of the fixed asset by a changeable coefficient based on this duration.

This changeable coefficient is called declining coefficient and varies based on the depreciation duration:

Duration < 5 years --> Coefficient = 1,5
Duration = 5 years and < 8 years --> Coefficient = 2
Duration = 8 years --> Coefficient = 2,5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration	Declining rate
3 years	(1 / 3) * 1,5 = 50%
4 years	(1 / 4) * 1,5 = 37,50%
5 years	(1 / 5) * 2 = 40%
6 years	(1 / 6) * 2 = 33,33%
6,66 or 6,67	(1 / 6,666666) * 2 = 30,00%
7 years	(1 / 7 ) * 2 = 28,57%
8 years	(1 / 8) * 2,5 = 31,25%
10 years	(1 / 10) * 2,5 = 25%
12 years	(1 / 12) * 2,5 = 20,83%
15 years	(1 / 15) * 2,5 = 16,67%
20 years	(1 / 20) * 2,5 = 12,5%

Depreciation end date

It is determined as follows:

Depreciation start date + Depreciation duration

Example 1:

Depreciation start date = 12/05/2005
Duration = 3 years
Depreciation end date = 12/04/2008

Example 2:

Depreciation start date = 01.01.05
Duration = 5 years
Depreciation end date = 31.12.09

Prorata temporis

Time is expressed in days.
A prorata temporis always expressed in days applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the duration of a fiscal year differs from 12 months.
During the disinvestment fiscal year: the depreciation expense is calculated until the day mentioned in the asset issue date. This rule can be modified by Issue rules: No depreciation expenditure on issue day, Prevous fiscal year end issue and Cuurent fiscal year end issue.

Depreciation charges

The 1st fiscal year charge is equal to:
Depreciation value * declining rate * prorata temporis

A Prorata temporis in days is applied in the following situations:

- The Depreciation start date is superior to the Fiscal year start date
- The fiscal year Duration differs from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

The depreciation expenditure of the following fiscal years equals:
Fiscal year start net depreciation value * rate * prorata temporis

A Prorata temporis in days is applied in the following situations:

- The fiscal year Duration differs from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

If the Depreciation en date belongs to interval [Fiscal year start date – Fiscal year end date], the fiscal year charge is equal to the fiscal year start Net depreciation value, in order to close the depreciation.

To this fiscal year charge thus obtained, a prorata temporis is applied in the following cases:
- The Asset issue date belongs to interval [Fisscal year start date – Fiscal year end date]
and
- The Issue date is inferior to the Depreciation end date

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =

Fiscal year charge

*
( Σ p1 to pc ( (Period weight / Period number of days) * Number of holding days in the period )

( Σ p1 to pf ( (Period weight / Period number of days) * Number of holding days in the period )

-
Previous periods depreciation total

p1 to pc = of the 1st holding period in the fiscal year, until the current period included (1)
p1 to pf = of the 1st holding period in the fiscal year; until the last fiscal year holding period.

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. The retained period thus is the minimum one among the 3 following ones:

- depreciation end period if the Depreciation end date belongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years, Rate: 40 %
Depreciation end date: 14/09/2010

(1) 10 000,00 * 40% * 108/365 for the asset is held only for 108 days during this 1st fiscal year.

(2) 8 816,44 * 40%

(3) Fiscal year charge = Net value since the depreciation end date 09/14/2010 is to be found in the fiscal year

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years, Rate: 40 %
Depreciation end date: 14/09/2010
Asset issue date: 10/01/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 183,56	1 183,56
01/01/2006 – 31/12/2006	8 816,44	(2) 3 526,58	4 710,14
01/01/2007 – 31/12/2007	5 289,86	2 115,94	6 826,08
01/01/2008 – 31/12/2008	3 173,92	1 269,57	8 095,65
01/01/2009 – 31/12/2009	1 904,35	761,74	8 857,39
01/01/2010 – 31/12/2010	1 142,61	(3) 44,46	8 901,95

(1) 10 000,00 * 40% * 108/365 for the asset is held only for 108 days during this 1st fiscal year.

(2) 98 816,44 * 40%

(3) Fiscal year charge = Net value since the depreciation end date 09/14/2010 is to be found in the fiscal year and application of prorata temporis 1 142,61 * 10 days / 257 days = 44,46

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 183,56	1 183,56
01/01/2006 – 31/12/2006	8 816,44	(2) 3 526,58	4 710,14
01/01/2007 – 31/12/2007	5 289,86	2 115,94	6 826,08
01/01/2008 – 31/12/2008	3 173,92	1 269,57	8 095,65
01/01/2009 – 31/12/2009	1 904,35	761,74	8 857,39
01/01/2010 – 31/12/2010	1 142,61	(3) 1 142,61	10 000,00

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

DI - Spanish mixed declining

It is the declining depreciation method applied based on Spanish rules: this depreciation method thus meets the Spanish accounting and fiscal standards.
It is called mixed in so far as the depreciation schedule e,ds in straight-line, as it is the case for the French declining method.

Depreciation origin

The declining depreciationorigin is the day entered in the depreciation start date.

Duration

It must be entered by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Rate

This coefficient is called declining coefficient and varies based on the depreciation duration:

Duration < 5 years --> Coefficient = 1,5
Duration = 5 years and < 8 years --> Coefficient = 2
Duration = 8 years --> Coefficient = 2,5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration	Declining rate
3 years	(1 / 3) * 1,5 = 50%
4 years	(1 / 4) * 1,5 = 37,50%
5 years	(1 / 5) * 2 = 40%
6 years	(1 / 6) * 2 = 33,33%
6,66 or 6,67	(1 / 6,666666) * 2 = 30,00%
7 years	(1 / 7 ) * 2 = 28,57%
8 years	(1 / 8) * 2,5 = 31,25%
10 years	(1 / 10) * 2,5 = 25%
12 years	(1 / 12) * 2,5 = 20,83%
15 years	(1 / 15) * 2,5 = 16,67%
20 years	(1 / 20) * 2,5 = 12,5%

Depreciation end date

It is determined as follows:

Depreciation start date + Depreciation duration

Example 1:

Depreciation start date = 12/05/2005
Duration = 3 years
Depreciation end date = 12/04/2008

Example 2:

Depreciation start date = 01/01/2005

Life = 5 years

Depreciation end date = 12/31/2009

Prorata temporis

Time is expressed in days. A prorata temporis always expressed in days applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the duration of a fiscal year differs from 12 months.
During the disinvestment fiscal year: the depreciation expense is calculated until the day mentioned in the asset issue date. This rule can be modified by Issue rules: No depreciation expenditure on issue day, Prevous fiscal year end issue and Cuurent fiscal year end issue.

Depreciation charges

The 1st fiscal year charge is equal to:
Depreciation value * declining rate * prorata temporis

A Prorata temporis in days is applied in the following situations:

- The Depreciation start date is superior to the Fiscal year start date
- The fiscal year Duration differs from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

The depreciation expenditure for the following fiscal years equals:

Fiscal year start net depreciation value * rate * prorata temporis

A Prorata temporis in days is applied in the following cases:

- The fiscal year Durationis different from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

If the Fiscal year start Net depreciation value is inferior or equal to the Depreciation value / Depreciation duration, the above-mentioned calculation is replaced with:

Fiscal year charge = Fiscal year start net depreciation value.

To this fiscal year charge thus obtained, a prorata temporis is applied in the following cases:
- The Fiscal year duration is different from 12 months
and
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

If the depreciation end date is inferior or equal to the fiscal year end date, the fiscal year charge will automatically be loaded with the net depreciation value so as to close the depreciation.

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =

Fiscal year charge

*
( Σ p1 to pc ( (Period weight / Period number of days) * Number of holding days in the period )

( Σ p1 to pf ( (Period weight / Period number of days) * Number of holding days in the period )

-
Previous periods depreciation total

p1 to pc = of the 1st holding period in the fiscal year, until the current period included (1)
p1 to pf = of the 1st holding period in the fiscal year; until the last fiscal year holding period.

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years, Rate: 40%
Depreciation end date: 14/09/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 183,56	1 183,56
01/01/2006 – 31/12/2006	8 816,44	(2) 3 526,58	4 710,14
01/01/2007 – 31/12/2007	5 289,86	2 115,94	6 826,08
01/01/2008 – 31/12/2008	3 173,92	1 269,57	8 095,65
01/01/2009 – 31/12/2009	1 904,35	(3) 1 904,35	10 000,00
01/01/2010 – 31/12/2010	0,00	0,00	10 000,00

(1) 10 000,00 * 40% * 108/365 for the asset is held only for 108 days during this 1st fiscal year.

(2) 8 816,44 * 40%

(3) Net value 1 904,35 < (10 000,00 / 5 ). The depreciation is closed, depreciation expenditure = 1 904,35

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 15/09/2005
Depreciation duration: 5 years, Rate: 40%
Depreciation end date: 14/09/2010
Asset issue date: 30/06/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 183,56	1 183,56
01/01/2006 – 31/12/2006	8 816,44	(2) 3 526,58	4 710,14
01/01/2007 – 31/12/2007	5 289,86	2 115,94	6 826,08
01/01/2008 – 31/12/2008	3 173,92	(3) 631,32	7 457,40

(1) 10 000,00 * 40% * 108/365 for the asset is held only for 108 days during this 1st fiscal year.

(2) 98 816,44 * 40%

(3) 3,173.92 * 40% * 182/366 for the asset is held only for 182 days during this fiscal year.

Distribution of the 2006 fiscal year charge based on the period weight in days:

Period	Number of days / Weight	Number of holding days	Depreciation charge
01/01/2006 – 31/03/2006	90 / 90	90	(4) 961,79
01/04/2006 – 30/06/2006	91 / 90	91	(5) 961,80
01/07/2006 – 30/09/2006	92 / 60	92	(6) 641,20
01/10/2006 – 31/12/2006	92 / 90	92	(7) 961,79
2006 fiscal year total			3 526,58

(4) 3 526,58 * (90 / 90 * 90) / [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92) + (90 / 92 * 92) ] = 961,79

(5) 3 526,58 * [(90 / 90 * 90) + (90 / 91 * 91) ]
/ [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92) + (90 / 92 * 92) ] = 1 923,59 – 961,79 = 961,80

(6) 3 526,58 * [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92)]

/ [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92) + (90 / 92 * 92) ] = 2 564,79 – 1 923,59 = 641,20

(7) 3 526,58 * [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92) + (90 / 92 * 92) ]

/ [(90 / 90 * 90) + (90 / 91 * 91) + (60 / 92 * 92) + (90 / 92 * 92) ] = 3 526,58 – 2 564,79 = 961,79

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

LE - Spanish straight-line

It is the straight-line depreciation method applied based on Spanish rules.

Depreciation origin

The orgin is the 1st day of the month entered in the depreciation start date.

Duration

The duration is expressed in years and hundredths of years.
For instance: 6,66 or 6,67 for a duration of 6 years 2/3.

When the rate is specified, the depreciation duration is automatically determined based on the entered rate.

Rate

In case the depreciation rate is not specified by the user, Sage X3 will determine it as follows:1 / duration with a rounding on the 4th decimal.

Examples:

Depreciation duration	Depreciation rate:
1 year	100%
2 years	50%
3 years	33,33%
4 years	25%
5 years	20%
6 years	16,67%
6 years 2/3 (6,66 or 6,67)	15%
8 years	12,50%
10 years	10%
12 years	8,33%
15 years	6,67%
20 years	5%

Depreciation end date

It is determined as follows:

1st day of the month entered as Depreciation start date + depreciation duration

This end date is adjusted on the last day of the month.

Examples:

Start date	Duration	End date
01/01/2005	5 years	31/12/2009
01/07/2005	5 years	30/06/2010
14/03/2005	5 years	28/02/2010
01/01/2005	6,66	31/08/2011

Prorata temporis

Time is expressed in months or in weeks.
By default, it is expressed in months; to be expressed in weeks, it is necessary to activate flag Prorata temporis in weeks, at Context management level.

A prorata temporis applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the duration of a fiscal year differs from 12 months.
During the disinvestment fiscal year: the depreciation expenditure is calculated until the issue day if it corresponds to the last day of the month; if not, the depreciation expenditure is calculated until the end of the monthe that precedes the issue date.
This rule can be questioned by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

The depreciation expenditure is calculated in the following way :

Depreciation value * Depreciation rate * prorata temporis

A prorata temporis in months or in weeks will be applied in the following cases:
- The Depreciation start date is superior to the Fiscal year start date
- The Fiscal year duration differs from 12 months
- The Asset issue date belongs to interval [Fiscal year start date – Fiscal year end date]

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value
- If the depreciation end date is inferior or equal to the fiscal year end date, the fiscal year charge will be automatically loaded with the net depreciation value in order to close the depreciation.

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =

Fiscal year charge

*
( Σ p1 to pc ( (Perio weight / Number of months or weeks in the period) * Number of holding moths or weeks in the period )
/
Σ p1 to pf ( (Period weight / Number of months or weeks in the period) * Number of holding months or weeks in the period ) )
-
Previous periods depreciation total

p1 to pc = from the 1st fiscal year holding period to the current period icluded (1)
p1 to pf = from the 1st fiscal year holding period to the last fiscal year holding period.

(1) Unless the asset has been issued during the fiscal year before this current period or if it is completely depreciated during the fiscal year before this current period. The retained period thus is the minimum one among the 3 following ones:

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005

Depreciation duration: 5 years, Rate: 20% --> Depreciation end date: 31/10/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 333 ,33	333,33
01/01/2006 – 31/12/2006	9 666,67	2 000,00	2 333,33
01/01/2007 – 31/12/2007	7 666,67	2 000,00	4 333,33
01/01/2008 – 31/12/2008	5 666,67	2 000,00	6 333,33
01/01/2009 – 31/12/2009	3 666,67	2 000,00	8 333,33
01/01/2010 – 31/12/2010	1 666,67	(2) 1 666,67	10 000,00

(1) 10 000,00 * 20% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) The depreciation end date 10/31/2010 is to be found in this fiscal year, which means that the depreciation is closed.

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 28/02/2005
Depreciation duration: 6.66 years, Rate: 15% --> Depreciation end date: 30/09/2011

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 375,00	1 375,00
01/01/2006 – 31/12/2006	8 625,00	1 500,00	2 875,00
01/01/2007 – 31/12/2007	7 125,00	1 500,00	4 375,00
01/01/2008 – 31/12/2008	5 625,00	1 500,00	5 875,00
01/01/2009 – 31/12/2009	4 125,00	1 500,00	7 375,00
01/01/2010 – 31/12/2010	2 625,00	1 500,00	8 875,00
01/01/2011 – 31/12/2011	1 125,00	(2) 1 125,00	10 000,00

(1) 10 000,00 * 15% * 11/12th for the asset has been held for 11 months during this 1st fiscal year.

(2) The depreciation end date 30.09.11 is to be found in this fiscal year, which means that the depreciation is closed.

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 28/02/2005
Depreciation duration: 6.66 years, Rate: 15% --> Depreciation end date: 30/09/2011
Issue date: 04/05/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 375,00	1 375,00
01/01/2006 – 31/12/2006	8 625,00	1 500,00	2 875,00
01/01/2007 – 31/12/2007	7 125,00	1 500,00	4 375,00
01/01/2008 – 31/12/2008	5 625,00	(2) 500,00	4 875,00

(1) 10 000,00 * 15% * 11/12th for the asset has been held for 11 months during this 1st fiscal year.

(2) 10 000,00 * 15% * 4/12th = 500,00 for the asset has been held for 4 months during this fiscal year.

Distribution of the 2005 fiscal year charge based on the period weight in months:

Period	Number of months / Weight	Number of holding months	Depreciation charge
01/01/2005 – 31/03/2005	03 / 03	02	(3) 275,00
01/04/2005 – 30/06/2005	03 / 03	03	(4) 412,50
01/07/2005 – 30/09/2005	03 / 02	03	(5) 275,00
01/10/2005 – 31/12/2005	03 / 03	03	(6) 412,50
2005 fiscal year total			1 375,00

(3) 1 375,00 * (03 / 03 * 02) / [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 275,00

(4) 1 375,00 * [ (03 / 03 * 02) + (03 / 03 * 03) ]

/ [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 687,50 – 275,00 = 412,50

(5) 1 375,00 * [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) ]

/ [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 962,50 – 687,50 = 275,00

(6) 1 375,00 * [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ]

/ [ (03 / 03 * 02) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 1 375,00 – 962,50 = 412,50

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 28/02/2005
Depreciation duration: 6.66 years, Rate: 15% --> Depreciation end date: 30/09/2011
Special feature: Prorata temporis expressed in weeks
Issue date: 04/05/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 384,62	1 384,62
01/01/2006 – 31/12/2006	8 615,38	1 500,00	2 884,62
01/01/2007 – 31/12/2007	7 115,38	1 500,00	4 384,62
01/01/2008 – 31/12/2008	5 615,38	(2) 490,38	4 875,00

(1) 10 000,00 * 15% * 48/52th for the asset has been held for 48 weeks during this 1st fiscal year.

(2) 10 000,00 * 15% * 17/52th = 490.38 for the asset has been held for 17 weeks during this fiscal year

Distribution of the 2005 fiscal year charge based on the period weight in weeks:

Period	Number of weeks / Weight	Number of holding weeks	Depreciation charge
01/01/2005 – 31/03/2005	13 / 13	09	(3) 283,22
01/04/2005 – 30/06/2005	13 / 13	13	(4) 409,09
01/07/2005 – 30/09/2005	13 / 09	13	(5) 283,22
01/10/2005 – 31/12/2005	13 / 13	13	(6) 409,09
2005 fiscal year total			1 384,62

(3) 1 384,62 * (13 / 13 * 09) / [ (13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) + (13 / 13 * 13) ] = 283,22

(4) 1 384,62 * [(13 / 13 * 09) + (13 / 13 * 13) ]

/ [ (13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) + (13 / 13 * 13) ] = 692,31 – 283,22 = 409,09

(5) 1 384,62 * [(13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) ]

/ [ (13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) + (13 / 13 * 13) ] = 975,53– 692,31 = 283,22

(6) 1 384,62 * [ (13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) + (13 / 13 * 13) ]

/ [ (13 / 13 * 09) + (13 / 13 * 13) + (09 / 13 * 13) + (13 / 13 * 13) ] = 1 384,62 – 975,53 = 409,09

Depreciation origin
Duration
Rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

IT - Ordinary / Anticipated

This is a depreciation method used in Italy.
"Ordinario" is a straight-line type depreciation that can be accelerated by "anticipato".

Depreciation origin

It is dependent on the Fixed asset type and on the presence or absence of option Investment fiscal year prorata at IT method definition level:

- If option Investment fiscal year prorata is not specified:

·for tangible fixed assets: a ½ annuity will be retained for the 1st depreciation fiscal year, irrespective of the depreciation start date,

·for intangible fixed assets: a complete annuity will be retained for the 1st depreciation fiscal year, irrespective of the depreciation start date,

- If option Investment fiscal year prorata is specified:

·for tangible fixed assets, as for intangible fixed assets, the deprecitaiton origin is the day entered in the depreciation start date.

Duration

The depreciation duration is not specified for this depreciation method.

Rate

1 or 2 rates are indicated with a 4-decimal accuracy (for example: 33,3333 %):

The 1st rate is used to determine the "Ordinario" depreciation.
The 2nd rate is used to determine the "Anticipato" depreciation.

This rate:
- must be £ to the 1st rate,
- can only be entered and taken into account for the first 3 years for assets whose purchase status is "New",
- can only be entered and taken into account for the first year for assets whose purchase status is "Second-hand".

$..\FCT\SEEINFO$ Using an "anticipato" depreciation is free: for instance, for a "New" asset, the company can choose not to appliy any anticipato or to used it for 1 year among the 3 potential ones or for 2 years or the 3 of them. It is also possible to apply various rates to these years.

Depreciation end date

For this method, the depreciation end date cannot be determined, it remains unentered.

Prorata temporis

The (default) general rules are the following:

For the investment fiscal year, irrespective of the depreciation start date:

- For a tangible fixed asset, ½ annuity is calculated
- For an intangible fixed asset, a complete annuity is calculated
For the disinvestment fiscal year, irrespective of the issue date:

- No depreciation expenditure is calculated.

$..\FCT\SEEINFO$ These general rules can be questioned by 2 options specified at depreciation method definition level:

Investment fiscal year prorata
Disinvestment fiscal year prorata

- If the 1st option is specified, a prorata in days is applied to the 1st fiscql year, when the asset is not held for a complete year.

- If the 2nd option is specified, a prorata in days is applied to the asset issue fiscal year: the depreciation expenditure is calculated until the issue day.

Depreciation charges

The depreciation expenditure calculation is carried out as follows:

Ordinario depreciation expenditure:

- For the 1st fiscal year:

o For a tangible fixed asset:

Depreciation value * Ordinario rate * prorata temporis 1 (1)

o For an intangible fixed asset:

Depreciation value * Ordinario rate * prorata temporis 2 (2)

- From the 2nd fiscal year onward

o Depreciation value * Ordinario rate * Prorata temporis 3 (3)

(in the limit of the Net depreciation value)

Anticipato depreciation expenditure:

- For the 1st fiscal year:

o For a tangible fixed asset:

Depreciation value * Anticipato rate * prorata temporis 1 (1)

o For an intangible fixed asset:

Depreciation value * Anticipato rate * prorata temporis 2 (2)

- From the 2nd fiscal year onward

o Depreciation value * Anticipato rate * Prorata temporis 3 (3)

(1) Prorata temporis 1:

Either ½ if option Investment fiscal year prorata is not specified at depreciation method definition level.
Or Number of days [Depreciation start date – min (Fiscal year end date, Issue date)] / 365 or 366 days, of option Investment fiscal year prorata is specified.

(2) Prorata temporis 2:

Either 1 if option Investment fiscal year prorata is not specified at depreciation method definition level.
Or Number of days [Depreciation start date – min (Fiscal year end date, Issue date)] / 365 or 366 days, of option Investment fiscal year prorata is specified.

(3) Prorata temporis 3:

Either 0 if option Disinvestment fiscal year prorata is not specified at depreciation method definition level and if the Issue date Î [Fiscal year start date – Fiscal year end date]
Or Number of days [max (Fiscal year start date, Depreciation start date) – Issue date] /365 or 366 days, if option Investment fiscal year prorata is specified and if the Issue date Î [Fiscal year start date – Fiscal year end date].

Notes:
- Depreciation value = Gross value – Residual value
- Gross value = Depreciation basis

- The Ordinario depreciation expenditure is stored in field Depreciation expenditure.
- The Anticipato depreciation expenditure is stored in field Exceptional depreciation expenditure.
-When options Investment fiscal year prorata and Disinvestment fiscal year prorata are not specified, the Ordinario rate and the potential Anticipato rate are applied whatever the fiscal year duration: thus, the fiscal year corresponds to one year.
- Issue reason Rejection with exceptional depreciation has no effect for a schedule depreciated based on this depreciation method, it will be automatically processed as issue reason Rejection.

The depreciation expenditure is calculated when the asset is acquired and issued during the same fiscal year:

Option Investment fiscal year prorata	Option Disinvestment fiscal year prorata	Depreciation charge
No	No	0,00
No	Yes	½ annuity * holding prorata or (1) 1 annuity * holding prorata
Yes	No	0,00
Yes	Yes	Annuity * holding prorata

(1) ½ annuity if the Fixed asset type = Tangible and 1 annuity if the Fixed asset type = Intangible.

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =

Fiscal year charge
*
(Σ p1 to pc ( (Period weight / Number of days in the period) * Number of holding days in the period )
/
Σ p1 to pf ( (Period weight / Number of days in the period) * Number of holding days in the period ) )
-
Previous periods depreciation total

p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)

p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year (2)

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. Thus, the retained period is the minimum one among the 3 following ones:
- depreciation end period if the Depreciation end date bellongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

(2) If option Investment fiscal year prorata is not specified at method definition level, the 1st fiscal year charge will either be a complete annuity (intangible fixed asset), or a ½ annuity (tangible fixed asset). This fiscal year charge must be distributed over the various periods of the fiscal year, as if the asset had been acquired on the 1st day of the fiscal year: The 1st holding period in the fiscal year thus is the 1st period of the fiscal year.

$..\FCT\SEEINFO$ Each depreciation expenditure, the Ordinario and the Anticipato depreciation expenditures must be distributed over periods based on the same distribution rules.

Example 1:

Current period = [01/01/2005 - 03/31/2005]
Purchase date: 01/01/2005
Value : 1000 €
Depreciation rate: 20%

Fiscal year charge: 1000 * 20% * 50% = 100 €
Quarter depreciation expenditure 1: [01/01/2005 - 31/03/2005] = 100 * 3/12 = 25
Quarter depreciation expenditure 2: [01/04/2005 - 30/06/2005] = 100 * 3/12 = 25
Quarter depreciation expenditure 3: [01/07/2005 - 30/09/2005] = 100 * 3/12 = 25
Quarter depreciation expenditure 4: [01/10/2005 - 31/12/2005] = 100 * 3/12 = 25

Example 2:

Current period = [01/01/2005 - 03/31/2005]
Purchase date: 23/03/2005
Value : 1000 €
Depreciation rate: 20%

Example 3:

Current period = [01.04.05 - 30.06.05]
Purchase date: 23/03/2005
Value : 1000 €
Depreciation rate: 20%

Fiscal year charge: 1000 * 20% * 50% = 100 €
Quarter 1 depreciation expenditure: [01/01/2005 - 03/31/2005] = 0 since the asset has been recorded after the closure of this 1st quarter
Quarter 2 depreciation expenditure: [01/04/2005 - 30/06/2005] = 100 * 6/12 = 50 ... among which 25 to catch up the 1st quarter
Quarter 3 depreciation expenditure: [01/07/2005 - 30/09/2005] = 100 * 3/12 = 25
Quarter 4 depreciation expenditure: [01/10/2005 - 31/12/2005] = 100 * 3/12 = 25

Examples

1st example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 20%
Fixed asset type: Tangible
Purchase status: New

Fiscal year	Net value	Ordinario depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00	1 000,00
01/01/2006 – 31/12/2006	9 000,00	2 000,00	3 000,00
01/01/2007 – 31/12/2007	7 000,00	2 000,00	5 000,00
01/01/2008 – 31/12/2008	5 000,00	2 000,00	7 000,00
01/01/2009 – 31/12/2009	3 000,00	2 000,00	9 000,00
01/01/2010 – 31/12/2010	1 000,00	(2) 1 000,00	10 000,00

(1) 10 000,00 * 20% * 1/2 since in the absence of option Investment fiscal year prorata, a ½ annuity is applied, for a Tangible asset.

(2) 1 000,00 since the depreciation expenditure is restricted to the Net depreciation value.

2nd example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 25%
Fixed asset type: Intangible
Purchase status: New

Fiscal year	Net value	Ordinario depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 2 500,00	2 500,00
01/01/2006 – 31/12/2006	7 500,00	(2) 2 500,00	5 000,00
01/01/2007 – 31/12/2007	5 000,00	2 500,00	7 500,00
01/01/2008 – 31/12/2008	2 500,00	2 500,00	10 000,00

(1) 10 000,00 * 25% * 1/2 since in the absence of option Investment fiscal year prorata, a complete annuity is applied, for an Intangible asset.

3rd example

Gross value 10 000
Residual value: 0
Depreciation start date: 03/04/2005
Ordinario rate: 20%
Fixed asset type: Tangible
Purchase status: New
Option at IT mode level: Investment fiscal year prorata

Fiscal year	Net value	Ordinario depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 495,89	1 495,89
01/01/2006 – 31/12/2006	8 504,11	2 000,00	3 495,89
01/01/2007 – 31/12/2007	6 504,11	2 000,00	5 495,89
01/01/2008 – 31/12/2008	4 504,11	2 000,00	7 495,89
01/01/2009 – 31/12/2009	2 504,11	2 000,00	9 495,89
01/01/2010 – 31/12/2010	504,11	504,11	10 000,00

(1) 10 000,00 * 20% * 273/365 since the presence of option Investment fiscal year prorata provokes the application of a prorata in days: the asset has been held for 273 days out of the 365 days of the fiscal year.

4th example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 25%
Fixed asset type: Intangible
Purchase status: New
Option at IT mode level: Investment fiscal year prorata

Fiscal year	Net value	Ordinario depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 390,41	390,41
01/01/2006 – 31/12/2006	9 609,59	2 500,00	2 890,41
01/01/2007 – 31/12/2007	7 109,59	2 500,00	5 390,41
01/01/2008 – 31/12/2008	4 609,59	2 500,00	7 890,41
01/01/2009 – 31/12/2009	2 109,59	2 109,59	10 000,00

(1) 10 000,00 * 25% * 57/365 since the presence of option Investment fiscal year prorata provokes the application of a prorata in days: the asset has been held for 57 days out of the 365 days of the fiscal year.

5th example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 20%
Anticipato rate: 10 % on each of the first 3 years
Fixed asset type: Tangible
Purchase status: New
Option at IT mode level: Investment fiscal year prorata

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 312,33 156,16	468,49
01/01/2006 – 31/12/2006	9 531,51	2 000,00 1 000,00	3 468,49
01/01/2007 – 31/12/2007	6 531,51	2 000,00 1 000,00	6 468,49
01/01/2008 – 31/12/2008	3 531,51	2 000,00 0,00	8 468,49
01/01/2009 – 31/12/2009	1 531,51	(2) 1 531,51 0,00	10 000,00

(1) (10 000,00 * 20% * 57/365) and (10 000,00 * 10% * 57/365) since the presence of option Investment fiscal year prorata provokes the application of a prorata in days: the asset has been held for 57 days out of the 365 days of the fiscal year.

(2) 1,531.51 since the depreciation expenditure is restricted to the Net depreciation value.

6th example

Gross value 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 20%
Anticipato rate: 10 % for the investment fiscal year
Fixed asset type: Tangible
Purchase status: Second hand
Option at IT mode level: Investment fiscal year prorata

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 312,33 156,16	468,49
01/01/2006 – 31/12/2006	9 531,51	2 000,00	2 468,49
01/01/2007 – 31/12/2007	7 531,51	2 000,00	4 468,49
01/01/2008 – 31/12/2008	5 531,51	2 000,00	6 468,49
01/01/2009 – 31/12/2009	3 531,51	2 000,00	8 468,49
01/01/2010 – 31/12/2010	1 531,51	(2) 1 531,51	10 000,00

(1) (10 000,00 * 20% * 57/365) and (10 000 ,00 * 10% * 57/365) since the presence of option Investment fiscal year prorata provokes the application of a prorata in days: the asset has been held for 57 days out of the 365 days of the fiscal year.

(2) 1,531.51 since the depreciation expenditure is restricted to the Net depreciation value.

7th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 20%
Anticipato rate: 10 % for the investment fiscal year
Fixed asset type: Tangible
Purchase status: Second hand

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00 500,00	1 500,00
01/01/2006 – 31/12/2006	8 500,00	2 000,00	3 500,00
01/01/2007 – 31/12/2007	6 500,00	2 000,00	5 500,00
01/01/2008 – 31/12/2008	4 500,00	2 000,00	7 500,00
01/01/2009 – 31/12/2009	2 500,00	2 000,00	9 500,00
01/01/2010 – 31/12/2010	500,00	(2) 500,00	10 000,00

(1) (10 000,00 * 20% * 1/2) and (10 000 ,00 * 10% * 1/2) since in the absence of option Investment fiscal year prorata a ½ annuity is applied, for a Tangible asset.

(2) 500.00 since the depreciation expenditure is restricted to the Net depreciation value.

8th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Ordinario rate: 20%
Anticipato rate: 10 % for the investment fiscal year and 0,00 % for both others
Fixed asset type: Tangible
Purchase status: New

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 000,00 500,00	1 500,00
01/01/2006 – 31/12/2006	8 500,00	2 000,00	3 500,00
01/01/2007 – 31/12/2007	6 500,00	2 000,00	5 500,00
01/01/2008 – 31/12/2008	4 500,00	2 000,00	7 500,00
01/01/2009 – 31/12/2009	2 500,00	2 000,00	9 500,00
01/01/2010 – 31/12/2010	500,00	(2) 500,00	10 000,00

(1) (10 000,00 * 20% * 1/2) and (10 000 ,00 * 10% * 1/2) since in the absence of option Investment fiscal year prorata a ½ annuity is applied, for a Tangible asset.

(2) 500.00 since the depreciation expenditure is restricted to the Net depreciation value.

9th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/03/2006
Ordinario rate: 25%
Anticipato rate: 20 % for each of the first 3 fiscal years
Fixed asset type: Tangible
Purchase status: New

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 1 250,00 1 000,00	2 250,00
01/01/2007 – 31/12/2007	7 750,00	2 500,00 2 000,00	6 750,00
01/01/2008 – 31/12/2008	3 250,00	2 500,00 (2) 750,00	10 000,00

(1) (10 000,00 * 25% * 1/2) and (10 000,00 * 20% * 1/2) since in the absence of option Investment fiscal year prorata
a ½ annuity is applied, for a Tangible asset.

(2) Restricted to the Net depreciation value after carrying out the 2 500,00 of Ordinario depreciation expenditures.

Distribution of the 2006 fiscal year depreciation expenditure, based on the period weight:

Period	Number of days / Weight	Number of holding days	Ordinario depreciation expenditure Anticipato depreciation expenditure
01/01/2006 – 31/03/2006	90 / 90	90	(3) 308,22 246,58
01/04/2006 – 30/06/2006	91 / 91	91	(4) 311,64 249,31
01/07/2006 – 30/09/2006	92 / 92	92	(5) 315,07 252,06
01/10/2006 – 31/12/2006	92 / 92	92	(6) 315,07 252,05
2006 fiscal year total			1 250,00 1 000,00

(3) 1 250,00* (90 / 90 * 90) / [ (90 / 90 * 90) + (91 / 91 * 91) + (92 / 92 * 92) + (92 / 92 * 92) ] = 308,22

(4) 1 250,00* [ (90 / 90 * 90) + (91 / 91 * 91) ]

/ [ (90 / 90 * 90) + (91 / 91 * 91) + (92 / 92 * 92) + (92 / 92 * 92) ] = 619,86 – 308,22 = 311,64

(5) 1 250,00* [ (90 / 90 * 90) + (91 / 91 * 91) + (92 / 92 * 92) ]

/ [ (90 / 90 * 90) + (91 / 91 * 91) + (92 / 92 * 92) + (92 / 92 * 92) ] = 934,93 – 619,86 = 315,07

(6) 1 250,00* [ (90 / 90 * 90 ) + (91 / 91 * 91) + (92 / 92 * 92) + (92 / 92 * 92)]

/ [ (90 / 90 * 90) + (91 / 91 * 91) + (92 / 92 * 92) + (92 / 92 * 92) ] = 1 250,00 – 934,93 = 315,07

The Anticipato depreciation expenditure of 1 000,00 is distributed over the various periods based on the same distribution.

10th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/03/2006
Ordinario rate: 25%
Anticipato rate: 20 % for each of the first 3 fiscal years
Fixed asset type: Tangible
Purchase status: New
Issue date: 14/03/2008

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 1 250,00 1 000,00	2 250,00
01/01/2007 – 31/12/2007	7 750,00	2 500,00 2 000,00	6 750,00
01/01/2008 – 31/12/2008	3 250,00	(2) 0,00 0,00	6 750,00

(1) (10 000,00 * 25% * 1/2) and (10 000 ,00 * 20% * 1/2) since in the absence of option Investment fiscal year prorata a ½ annuity is applied, for a Tangible asset.

(2) In the absence of option Disiinvestment fiscal year prorata, no depreciation expenditure is calculated for the issue fiscal year.

11th example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/03/2006
Ordinario rate: 25%
Anticipato rate: 20 % for each of the first 3 fiscal years
Fixed asset type: Tangible
Purchase status: New
Issue date: 14/03/2008
Method option: Disinvestment fiscal year prorata

Fiscal year	Net value	Ordinario depreciation expenditure Anticipato depreciation expenditure	Fiscal year total
01/01/2006 – 31/12/2006	10 000,00	(1) 1 250,00 1 000,00	2 250,00
01/01/2007 – 31/12/2007	7 750,00	2 500,00 2 000,00	6 750,00
01/01/2008 – 31/12/2008	3 250,00	(2) 505,46 (3) 151,64	7 407,10

(1) (10 000,00 * 25% * 1/2) and (10 000 ,00 * 20% * 1/2) since in the absence of option Investment fiscal year prorata, a ½ annuity is applied, for a Tangible asset.

(2) (10 000,00 * 25%) * 74/366 = 505,46 : due to the presence of option Disinvestment fiscal year prorata, a prorata temporis is applied until the issue day.

(3) 750,00 * 74/366 = 151,64 : (10 000,00 * 20%) * 74/366 is not retained, for if the asset has not been issued, the Anticipato depreciation expenditure would have been restricted to 750,00 (see example 9)

Depreciation origin
Duration
Declining depreciation rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

DP - Portuguese declining

This is a Portuguese declining depreciation method whose rules vary with those defined at Portuguese mixed declining method level.

This methos thus is a variant of the Portuguese mixed declining.

Depreciation origin

The declining depreciation origin is the first day of the month entered in the depreciation start date.

Duration

It is necessarily superior or equal to 3 years and must be specified by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Declining depreciation rate

This coefficient is called declining coefficient and varies based on the depreciation duration:

Duration = 3 years and < 5 years --> Coefficient = 1.5
Duration = 5 years and = 6 years --> Coefficient = 2
Duration > 6 years --> Coefficient = 2,5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration	Declining rate
3 years	(1 / 3) * 1,5 = 50%
4 years	(1 / 4) * 1,5 = 37,50%
5 years	(1 / 5) * 2 = 40%
6 years	(1 / 6) * 2 = 33,33%
6,66 or 6,67	(1 / 6,666666) * 2,5 = 37,50%
7 years	(1 / 7 ) * 2,5 = 35,71%
8 years	(1 / 8) * 2,5 = 31,25%
10 years	(1 / 10) * 2,5 = 25%
12 years	(1 / 12) * 2,5 = 20,83%
15 years	(1 / 15) * 2,5 = 16,67%
20 years	(1 / 20) * 2,5 = 12,5%

Depreciation end date

It is determined as follows:

1st day of the month to which the Depreciation start date belongs + depreciation duration converted in months.
The depreciation end date corresponds to the last day of the month.

Example 1:

Depreciation start date = 12/05/2005
Duration = 3 years
Depreciation end date = 30.11.08

Example 2:

Depreciation start date = 05.11.05
Duration = 5 years
Depreciation end date = 31.10.10

Example 3:

Depreciation start date = 05.02.05
Duration = 6.66 years
Depreciation end date = 30.09.11

Prorata temporis

The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:

During an acquisition fiscal year, when the origin of the depreciation is not the 1st day of the fiscal year.
When the fiscal year start date is not the 1st day of the month, it is the 1st day of the month that is retained as fiscal year start date.
When the duration of a fiscal year differs from 12 months.
During the disinvestment fiscal year: the depreciation expenditure is calculated until the end of the month that precedes the asset issue month or until the end of the asset issue month if this date corresponds to the last day of a month. This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

Except for the last depreciation fiscal year, the fiscal year charge equals:

Depreciation value * rate * prorata temporis (number of holding months / 12)

The number of holding months will be different from 12 in the following situations:
- The Depreciation start date is superior to the fiscal year start date
- The fiscal year Durationdiffers from 12 months
- The asset Issue date belongs to interval [Fiscal year start date – Fiscal year end date]

The depreciation expenditure of the last fiscal year equals:

Fiscal year start net depreciation value * prorata temporis (number of holding months / number of months that are still to be depreciated) (2)

(1) The last fiscal year is that in which the Depreciation end date is to be found.

(2) A prorata temporis will be applied only if the asset has been issued before the depreciation end date.

If the depreciation end date is inferior or equal to the fiscal year start date, the fiscal year charge will automatically be loaded with the net depreciation value so as to close the depreciation.

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge pc =
Fiscal year charge
*
(Σ p1 to pc ( (Period weight / Number of months in the period) * Number of holding months in the period )
/
Σ p1 to pf ( (Period weight / Number of months in the period) * Number of holding months in the period ) )
-
Previous periods depreciation total

p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)

p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. Thus, the retained period is the minimum one among the 3 following ones:
- depreciation end period if the Depreciation end date bellongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years, Rate: 40%
Special feature: the 2nd fiscal year has a duration of 6 months
Depreciation end date: 31/10/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 30/06/2006	9 333,33	(2) 1 866,67	2 533,34
01/07/2006 – 30/06/2007	7 466,66	2 986,66	5 520,00
01/07/2007 – 30/06/2008	4 480,00	1 792,00	7 312,00
01/07/2008 – 30/06/2009	2 688,00	1 075,20	8 387,20
01/07/2009 – 30/06/2010	1 612,80	645,12	9 032,32
01/07/2010 – 30/06/2011	967,68	(3) 967,68	10 000,00

(1) 10 000,00 * 40% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 for the duration of this 2nd fiscal year is 6 months.

(3) Fiscal year charge = Fiscal year start net value since the depreciation end date is to be found in this fiscal year

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years, Rate: 40%
Special feature: the 2nd fiscal year has a duration of 6 months
Depreciation end date: 31/10/2010
Asset issue date: 03/09/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 30/06/2006	9 333,33	(2) 1 866,67	2 533,34
01/07/2006 – 30/06/2007	7 466,66	2 986,66	5 520,00
01/07/2007 – 30/06/2008	4 480,00	1 792,00	7 312,00
01/07/2008 – 30/06/2009	2 688,00	1 075,20	8 387,20
01/07/2009 – 30/06/2010	1 612,80	645,12	9 032,32
01/07/2010 – 30/06/2011	967,68	(3) 483,84	9 516,16

(1) 10 000,00 * 40% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 for the duration of this 2nd fiscal year is 6 months.

(3) 967,68 * 2/4 since the asset is held for 2 months, whereas the residual depreciation duration is 4 months.

Distribution of the 2011 fiscal year charge based on the period weight:

Period	Number of months / Weight	Number of holding months	Depreciation charge
01/07/2010 – 30/09/2010	03 / 03	02	(4) 483,84
01/10/2010– 31/12/2010	03 / 03	0	0,00
01/01/2011 – 31/03/2011	03 / 03	0	0,00
01/04/2011 – 30/06/2011	03 / 03	0	0,00
2011 fiscal year total			483,84

(4) 483,84 * (03 / 03 * 02) / [ (03 / 03 * 02) + (03 / 03 * 0) + (03 / 03 * 0) + (03 / 03 * 0) ] = 483,84

Depreciation origin
Duration
Declining depreciation rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

DV - Portuguese mixed declining

It is the declining depreciation method applied based on Portuguese rules: this depreciation method meets the Portuguese accounting and finance standards.
It is called mixed in so far as the depreciation schedule ends in straight-line, as it is the case with the French declining method. Nevertheless, to draw a parallel with the French declining method, this method will be called Portuguese declining.

Depreciation origin

The declining depreciation origin is the first day of the month entered in the depreciation start date.

Duration

It is necessarily superior or equal to 3 years and must be specified by the user, in years and hundredths of years.

For instance: 6 years 2/3 = 6,66 or 6,67.

Declining depreciation rate

This coefficient is called declining coefficient and varies based on the depreciation duration:

Duration = 3 years and < 5 years --> Coefficient = 1.5
Duration = 5 years and = 6 years --> Coefficient = 2
Duration > 6 years --> Coefficient = 2,5

The calculated depreciation rate is rounded to 2 decimals.

Examples:

Duration	Declining rate
3 years	(1 / 3) * 1,5 = 50%
4 years	(1 / 4) * 1,5 = 37,50%
5 years	(1 / 5) * 2 = 40%
6 years	(1 / 6) * 2 = 33,33%
6,66 or 6,67	(1 / 6,666666) * 2,5 = 37,50%
7 years	(1 / 7 ) * 2,5 = 35,71%
8 years	(1 / 8) * 2,5 = 31,25%
10 years	(1 / 10) * 2,5 = 25%
12 years	(1 / 12) * 2,5 = 20,83%
15 years	(1 / 15) * 2,5 = 16,67%
20 years	(1 / 20) * 2,5 = 12,5%

Depreciation end date

Example 1:

Depreciation start date = 12/05/2005
Duration = 3 years
Depreciation end date = 30.11.08

Example 2:

Depreciation start date = 05.11.05

Life = 5 years

Depreciation end date = 31.10.10

Example 3:

Depreciation start date = 05.02.05

Life = 6.66 years

Depreciation end date = 30.09.11

Prorata temporis

The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:

During an acquisition fiscal year, when the origin of the depreciation is not the 1st day of the fiscal year.
When the fiscal year start date is not the 1st day of the month, it is the 1st day of the month that is retained as fiscal year start date.
When the duration of a fiscal year differs from 12 months.
During the disinvestment fiscal year: the depreciation expenditure is calculated until the end of the month that precedes the asset issue month or until the end of the asset issue month if this date corresponds to the last day of a month. This rule can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

The 1st fiscal year charge is equal to:
Depreciation value * rate * prorata temporis (number of holding months / 12)

The number of holding months will be different from 12 in the following situations:
- The Depreciation start date is superior to the Fiscal year start date
- The Fiscal year duration is different from 12 months
- The Asset issue date belongs to interval [Fiscal year start date – Fiscal year end date]
The depreciation expenditure of the following fiscal years is equal to:
- either: Fiscal year start net depreciation value * rate * prorata temporis (number of holding months / 12)
- or: Fiscal year start net depreciation value * (Number of holding months in the fiscal year / Number of months that remain to be depreciated from the fiscal year start onward)
if the result of this calculation is superior to:
Fiscal year start net depreciation value * rate * prorata temporis (number of holding months / 12)

The number of holding months will be different from 12 in the following situations:
- The Fiscal year duration is different from 12 months
- The Asset issue date belongs to interval [Fiscal year start date – Fiscal year end date]

If the depreciation end date is inferior or equal to the fiscal year end date, the fiscal year charge is automatically loaded with the net depreciation value so as to close the depreciation.

Notes:
- Depreciation value = Gross value – Residual value
- Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

p1 to pc = of the 1st holding period in the fiscal year, until the current period included (1)
p1 to pf = of the 1st holding period in the fiscal year; until the last fiscal year holding period.

(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. Thus, the retained period is the minimum one among the 3 following ones:
- depreciation end period if the Depreciation end date bellongs to interval [period start – period end]
- issue period if the Issue date belongs to interval [period start – period end]
- current period

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years, Rate: 40%
Special feature: the 2nd fiscal year has a duration of 6 months
Depreciation end date: 31/10/2010

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 30/06/2006	9 333,33	(2) 1 866,67	2 533,34
01/07/2006 – 30/06/2007	7 466,66	2 986,66	5 520,00
01/07/2007 – 30/06/2008	4 480,00	1 792,00	7 312,00
01/07/2008 – 30/06/2009	2 688,00	(3) 1 152,00	8 464,00
01/07/2009 – 30/06/2010	1 536,00	1 152,00	9 616,00
01/07/2010 – 30/06/2011	384,00	384,00	10 000,00

(1) 10 000,00 * 40% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 for the duration of this 2nd fiscal year is 6 months.

(3) 2 688,00 * 12 months / 28 months = 1 152,00 > 2 688,00 * 40% = 1 075,20

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/11/2005
Depreciation duration: 5 years, Rate: 40%
Special feature: the 2nd fiscal year has a duration of 6 months
Depreciation end date: 31/10/2010
Asset issue date: 31/12/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 666,67	666,67
01/01/2006 – 30/06/2006	9 333,33	(2) 1 866,67	2 533,34
01/07/2006 – 30/06/2007	7 466,66	2 986,66	5 520,00
01/07/2007 – 30/06/2008	4 480,00	1 792,00	7 312,00
01/07/2008 – 30/06/2009	2 688,00	(3) 576,00	7 888,00

(1) 10 000,00 * 40% * 2/12th for the asset is only held for 2 months during this 1st fiscal year.

(2) 9,333.33 * 40% * 6/12 for the duration of this 2nd fiscal year is 6 months.

(3) 2 688,00 * 6 months / 28 months = 576,00 > 2 688,00 * 40% * 6/12 = 537,60

3rd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 05/12/2005
Depreciation duration: 3 years, Rate: 50%
Depreciation end date: 31/11/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 416,67	416,67
01/01/2006 – 31/12/2006	9 583,33	(2) 4 791,67	5 208,34
01/01/2007 – 31/12/2007	4 791,66	(3) 2 500,00	7 708,34
01/01/2008 – 31/12/2008	2 291,66	2 291,66	10 000,00

(1) 10 000,00 * 50% * 1/12th for the asset is only held for 1 months during this 1st fiscal year.

(2) 9 583,33 * 50%

(3) 4,791.66 * 12 months / 23 months = 2,500.00 > 4,791.66 * 50% = 2,395.83

Distribution of the 2008 fiscal year depreciation expenditure, based on the period weight:

Period	Number of months / Weight	Number of holding months	Depreciation charge
01/01/2008 – 31/03/2008	03 / 03	03	(4) 687,50
01/04/2008 – 30/06/2008	03 / 03	03	(5) 687,50
01/07/2008 – 30/09/2008	03 / 02	03	(6) 458,33
01/10/2008 – 31/12/2008	03 / 03	02	(7) 458,33
2008 fiscal year total			2 291,66

(4) 2 291,66 * (03 / 03 * 03) / [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 687,50

(5) 2 291,66 * [ (03 / 03 * 03) + (03 / 03 * 03) ]

/ [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 1 375,00 – 687,50 = 687,50
(6) 2 291,66 * [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03)]
/ 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 1 833,33 – 1 375,00 = 458,33
(7) 2 291,66 * [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ]

/ [ (03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 02) ] = 2 291,66 – 1 833,33 = 458,33

Depreciation origin
Duration
Depreciation rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

PC - Portuguese constants

This is a straight-line depreciation method used in Portugal.

Depreciation origin

The depreciation origin is dependent on the Specific rule specified at depreciation schedule level:
- Based on Period (default value)
- Based on Fiscal year

If the specific rule is Based on Period, the depreciation origin depends on the day entered in the Depreciation start date:
- to the day specified in the Depreciation start date for the 1st day of the month
- to the 1st day of the month following the one entered in the Depreciation start date if the day entered in this depreciation start date is not the 1st day of the month.
If the specific rule is Based on Fiscal year, the depreciation origin will be the 1st day of the fiscal year following the acquisition fiscal year.

Duration

For this depreciation method, the depreciation rate usually is specified. Nevertheless, it is possible to enter the duration, in which case it will have to be entered in years and hundredths of years.

Depreciation rate

It is generally indicated by the user with an accuracy of 4 decimals (example: 33,3333 %).
When the depreciation rate is specified, Sage X3 determines the Depreciation duration, with an accuracy of a hundredth of year.

When the depreciation duration is entered, the rate is automatically determined by Sage X3.

Depreciation end date

It is determined as follows:

Depreciation start date + Depreciation duration

The depreciation start date to be taken into account is the depreciation origin determined based on the specified specific rule: either Based on Period or Based on fiscal year.

Since the depreciation start date necessarily is the 1st day of the month, the day of the Depreciation end date will be equal to the last day of the month.

Depreciation end date calculationexamples:

Start date	Rate / Duration	End date
01/10/2005	0,1428 / 7 years	30/09/2012
01/01/2005	0,1428 / 7 years	31/12/2011
01/11/2005	0,3003 / 3,33	28/02/2009

Prorata temporis

Time is expressed in months. A prorata temporis always expressed in months applies in the following cases:

During the acquisition fiscal year, when the depreciation origin is not the first day of the fiscal year.
When the fiscal year duration differs from 1 year.
During the disinvestment fiscal year:

o If the specific rule is Based on Period, the depreciation expenditure is calculated until the end of the month entered in the issue date.

o If the specific rule is Based on Fiscal year, a complete depreciation expenditure is calculated: the issue period depreciation expenditure (1) equals Fiscal year charge - Closed periods depreciation total.

This calculation term can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

(1) The issue period is either the period in which the Issue date is to be found, or the period in which the issue is recorded. This 2nd case is due to a retroactive issue.

Depreciation charges

Afiscal year charge is calculated as follows:

Depreciation value * Depreciation rate * prorata temporis in months (1)

If the asset has not been issued before its depreciation end date (Issue date (2) not entered or > Depreciation end date), the depreciation expenditure for the last depreciation fiscal year is equal to the Net depreciation value.
The last fiscal year is detected if the Depreciation end date Î [Fiscal year start date - Fiscal year end date].

(1) Prorata temporis = ( number of holding months in the fiscal year / 12 )

Number of holding months in the fiscal year = Number of months in the period [ max (depreciation start date, fiscal year start date) - min (depreciation end date, issue date (2), fiscal year end date) ]

(2) If the specific rule is Based on Period, it is the effective issue date, i.e. the last day of the month entered in the issue date, that is taken into account.
If the specific rule is Based on Fiscal year, the issue date must not be taken into account since a complete depreciation expenditure must be calculated for the disinvestment fiscal year.

Notes:

Depreciation value = Gross value – Residual value

Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period charge p = Depreciation value * Depreciation rate *

( number og months in the period [ max (depreciation start date, fiscal year start date) – min (depreciation end date, issue date (3), period end date p) ] / 12 )
- Previous periods depreciation total
(3)
- If the specific rule is Based on Period, it is the effective issue date, i.e. the last of the month entered in the issue date, that is taken into account.
- If the specific rule is Based on Fiscal year, the issue period charge (4) is calculated as follows:
Fiscal year charge - Closed periods depreciation toal

(4) The issue period is either the period in which the issue date is to be found, or the period in which the issue is recorded. This 2nd case is due to a retroactive issue.

For the last period of the depreciation, the depreciation expenditure of this last period equals:

Fiscal year charge - Previous periods depreciation total

$..\FCT\SEEINFO$ To comply with the calculation terms relating to this depreciation method, each period of the fiscal year must be equal to 1 month or to a number of complete month: Sage X3 does not check the consistency of this division; it bases itself on the existing division and thus on the number of months included in each defined period.

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/11/2005
Rate: 14,28 % --> Depreciation duration: 7 years --> Depreciation end date: 31/10/2012

Specific rule: Based on Period

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 238,00	238,00
01/01/2006 – 31/12/2006	9 762,00	(2) 1 428,00	1 666,00
01/01/2007 – 31/12/2007	8 334,00	(2) 1 428,00	3 094,00
01/01/2008 – 31/12/2008	6 906,00	(2) 1 428,00	4 522,00
01/01/2009 – 31/12/2009	5 478,00	(2) 1 428,00	5 950,00
01/01/2010 – 31/12/2010	4 050,00	(2) 1 428,00	7 378,00
01/01/2011 – 31/12/2011	2 622,00	(2) 1 428,00	8 806,00
01/01/2012 – 31/12/2012	1 194,00	(3) 1 194,00	10 000,00

(1) (10 000,00 * 14,28%) * 2 / 12 = 238

(2) (10 000,00 * 14,28%) * 12/12 = 1 428

(3) 10 000,00 – 8 806,00 = 1 194,00 since the depreciation end date (31/10/2012) is to be found in the fiscal year.

Distribution of the 2005 fiscal year charge:

Period	Due period	Previous periods depreciation total	Perioddepreciation expenditure
01/11/2005 – 30/11/2005	1 / 12	0,00	(1) 119,00
01/12/2005 – 31/12/2005	2 / 12	119,00	(2) 119,00
2005 fiscal year total			238,00

Distribution of the 2012 fiscal year charge:

Period	Due period	Previous periods depreciation total	Period depreciation expense
01/01/2012 – 31/01/2012	1 / 12	0,00	(1) 119,00
01/02/2012 – 29/02/2012	2 / 12	119,00	(2) 119,00
01/03/2012 – 31/03/2012	3 / 12	238,00	119,00
01/04/2012 – 30/04/2012	4 / 12	357,00	119,00
01/05/2012 – 31/05/2012	5 / 12	476,00	119,00
01/06/2012 – 30/06/2012	6 / 12	595,00	119,00
01/07/2012 – 31/07/2012	7 / 12	714,00	119,00
01/08/2012 – 31/08/2012	8 / 12	833,00	119,00
01/09/2012 – 30/09/2012	9 / 12	952,00	119,00
01/10/2012 – 31/10/2012		1 071,00	(3) 123,00
2005 fiscal year total			1 194,00

(1) (10 000,00 * 14,28%) * 1/12 – 0 = 119,00

(2) (10 000,00 * 14,28%) * 2/12 – 119,00 = 119,00

(3) 1 194,00 – 1 071,00 = 123,00 since the depreciation end date (10/31/2012) is to be found in this period [10/01/2012 – 10/31/2012]

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/12/2005
Rate: 30,03 % --> Depreciation duration: 3.33 years --> Depreciation end date: 31/03/2009
Specific rule: Based on Period
Particularities: asset issue on 02/25/2009 --> Effective issue date: 28/02/2009

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 250,25	250,25
01/01/2006 – 31/12/2006	9 749,75	(2) 3 003,00	3 253,25
01/01/2007 – 31/12/2007	6 746,75	(2) 3 003,00	6 256,25
01/01/2008 – 31/12/2008	3 743,75	(2) 3 003,00	9 259,25
01/01/2009 – 31/12/2009	740,75	(3) 493,83	9 753,08

(1) (10 000,00 * 30,03%) * 1 / 12 = 250,25

(2) (10 000,00 * 30,03%) * 12/12 = 3 003,00

(3) 740,75 * 2/3 = 493,83 since the depreciation end is on 03/31/2009 and the asset has been issued on 02/28/2009

Distribution of the 2009 fiscal year charge:

Period	"Due" period	Previous periods depreciation total	Period depreciation expense
01/01/2009– 31/01/2009	1 / 12	0,00	250,25
01/02/2009 – 28/02/2009	2 / 12	250,25	250,25
01/03/2009 – 31/03/2009	3 / 12	500,50	0,00
2009 fiscal year total			500,50

3rd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/07/2005
Rate: 33.3333 % --> Depreciation duration: 3 years --> Depreciation end date: 30/06/2008
Specific rule: Based on Period
Particularities: the asset is recorded though the closure of period 07/2005 has been completed.

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 1 666,67	1 666,67
01/01/2006 – 31/12/2006	8 333,33	(2) 3 333,33	5 000,00
01/01/2007 – 31/12/2007	5 000,00	(2) 3 333,33	8 333,33
01/01/2008 – 31/12/2008	1 666,67	(3) 1 666,67	10 000,00

(1) (10 000,00 * 33,3333%) * 6 / 12 = 1 666,67

(2) (10 000,00 * 33,3333%) * 12/12 = 3 333,33

(3) (10 000,00 - 8 333,33) = 1 666,67 since the depreciation end (06/30/2008) is to be found in this fiscal year.

Distribution of the 2005 fiscal year charge:

Period	"Due" period	Previous periods depreciation total	Period depreciation expense
01/01/2005 – 31/01/2005		0,00	0,00
01/02/2005 – 28/02/2005		0,00	0,00
01/03/2005 – 31/03/2005		0,00	0,00
01/04/2005 – 30/04/2005		0,00	0,00
01/05/2005 – 31/05/2005		0,00	0,00
01/06/2005 – 30/06/2005		0,00	0,00
01/07/2005 – 31/07/2005	1 / 12	0,00	0,00
01/08/2005 – 31/08/2005	2 / 12	(4) 0,00	(4) 555,55
01/09/2005 – 30/09/2005	3 / 12	555,55	277,78
01/10/2005 – 31/10/2005	4 / 12	833,33	277,78
01/11/2005 – 30/11/2005	5 / 12	1 111,11	277,78
01/12/2005 – 31/12/2005	6 / 12	1 388,89	277,78
2005 fiscal year total			1 666,67

(4) The depreciation start date is the 07/01/2005, but the asset has been recorded in period [08/01/2005 – 08/31/2005], the depreciation expenditure of this period thus contains the adjustment of the previous period.

4th example

Gross value: 120 000
Residual value: 0
Depreciation start date: 01/07/2004
Rate: 14,28 % --> Depreciation duration: 7 years --> Depreciation end date: 31/12/2011
Specific rule: Based on Fiscal year

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2004 – 31/12/2004	120 000,00	(1) 0,00	0,00
01/01/2005 – 31/12/2005	120 000,00	(2) 17 136,00	17 136,00
01/01/2006 – 31/12/2006	102 864,00	(2) 17 136,00	34 272,00
01/01/2007 – 31/12/2007	85 728,00	(2) 17 136,00	51 408,00
01/01/2008 – 31/12/2008	68 592,00	(2) 17 136,00	68 544,00
01/01/2009 – 31/12/2009	51 456,00	(2) 17 136,00	85 680,00
01/01/2010 – 31/12/2010	34 320,00	(2) 17 136,00	102 816,00
01/01/2011 – 31/12/2011	17 184,00	(3) 17 184,00	120 000,00

(1) Specific rule = "Based on Fiscal year" does not imply any depreciation expenditure for the acquisition fiscal year

(2) 120 000 * 14,28% * 12/12 = 17 136,00

(3) (120 000,00 – 102 816,00) = 17 184,00 since the depreciation end date (12/31/2011) is to be found in this fiscal year.

Distribution of the 2005 fiscal year depreciation expenditure if the asset has been issued on 05/15/2005, though the current period is [05/01/2005 – 05/31/2005]

Period	Previous periods depreciation total	Period depreciation expense
01/01/2005 – 31/01/2005		1 428,00
01/02/2005 – 28/02/2005	1 428,00	1 428,00
01/03/2005 – 31/03/2005	2 856,00	1 428,00
01/04/2005 – 30/04/2005	4 284,00	1 428,00
01/05/2005 – 31/05/2005	5 712,00	(4) 11 424,00
01/06/2005 – 30/06/2005	17 136,00	0,00
…	17 136,00	0,00
2005 fiscal year total		17 136,00

(4) 17 136,00 – 5 712,00 = 11 424,00 since the asset has been issued in 05/2005, the complete depreciation expenditure of the fiscal year is closed on this current period.

$..\FCT\SEEINFO$ Had the asset been issued in a retroactive way (Issue date < Current period start date), the procedure and the result would have been identical.

Distribution of the 2011 fiscal year depreciation expenditure, when the asset has not been issued before the depreciation end date:

Period	Previous periods depreciation total	Period depreciation expense
01/01/2011 – 31/01/2011		(1) 1 428,00
01/02/2011 – 28/02/2011	1 428,00	(2) 1 428,00
01/03/2011 – 31/03/2011	2 856,00	1 428,00
01/04/2011 – 30/04/2011	4 284,00	1 428,00
01/05/2011 – 31/05/2011	5 712,00	1 428,00
01/06/2011 – 30/06/2011	7 140,00	1 428,00
01/07/2011 – 31/07/2011	8 568,00	1 428,00
01/08/2011 – 31/08/2011	9 996,00	1 428,00
01/09/2011 – 30/09/2011	11 424,00	1 428,00
01/10/2011 – 31/10/2011	12 852,00	1 428,00
01/11/2011 – 30/11/2011	14 280,00	1 428,00
01/12/2011 – 31/12/2011	15 708,00	(3) 1 476,00
2011 fiscal year total		17 184,00

(1) (120 000 * 14,28% * 1/12) = 1 428,00

(2) (120 000 * 14,28% * 2/12) – 1 428,00 = 1 428,00

(3) 17 184,00 – 15 708,00 = 1 476,00

Depreciation origin
Duration
Depreciation rate
Depreciation end date
Prorata temporis
Depreciation charges
Distribution of the fiscal year charge on the periods
Examples

PD - Portuguese duodécimos

This is a straight-line depreciation method used in Portugal.

Depreciation origin

It is systematically equal to the 1st day of the month entered in the Depreciation start date, whether the specified Specific rule is:

Based on Period (default value)

or
Based on Fiscal year

Duration

Depreciation rate

When the depreciation duration is entered, the rate is automatically determined by Sage X3.

Depreciation end date

It is determined as follows:

Depreciation start date + Depreciation duration

Since the depreciation start date necessarily is the 1st day of a month, the depreciation end day will be equal to the last day of the month.

Depreciation end date calculationexamples:

Start date	Rate / Duration	End date
01/10/2005	0,1428 / 7 years	30/09/2012
01/01/2005	0,1428 / 7 years	31/12/2011
01/11/2005	0,3003 / 3,33	28/02/2009

Prorata temporis

Time is expressed in months. A prorata temporis always expressed in months applies in the following cases:

During the acquisition fiscal year, when the depreciation start date is not the 1st day of the fiscal year and as long as the specified Specific rule is Based on Period.
When the fiscal year duration differs from 1 year.
During the disinvestment fiscal year:

o If the specific rule is Based on Period, the depreciation expenditure is calculated until the issue date if it corresponds to the last day of the month; if this is not the case, the depreciation expenditure is calculated until the end of the month that precedes the issue date.

o If the specific rule is Based on Fiscal year, the issue fiscal year depreciation expenditure equals 0: the current ("current" upon issue record) period depreciation expenditure will be equal to: Fiscal year charge - Closed periods depreciation total

This calculation term can be modified by Issue rules: Previous fiscal year end issue and Current fiscal year end issue.

Depreciation charges

Afiscal year charge is calculated as follows:

Depreciation value * Depreciation rate * prorata temporis in months (1)

If the asset has not been issued before its depreciation end date (Issue date (2) not entered or > Depreciation end date), the depreciation expenditure of the last depreciation fiscal year will be equal to the Net depreciation value.

(1) Prorata temporis = ( number of holding months in the fiscal year / 12 )

Number of holding months in the fiscal year = Number of months in the period [ max (3) (depreciation start date, fiscal year start date) - min (depreciation end date, issue date (2), fiscal year end date) ]

(2) If the specific rule is Based on Fiscal year, the issue fiscal year depreciation expenditure will be 0.
If the specific rule is Based on Period, the issue date taken into account is:

either the issue date entered by the user if it correponds to the last day of the month
or the last day of the month that precedes the issue date

(3) If the specific rule is Based on Fiscal year, for the acquisition fiscal year, it is the Fiscal year start date, not the Depreciation start date that is taken into account since the depreciation expenditure of this fiscal year is complete.

Notes:

Depreciation value = Gross value – Residual value
Net depreciation value = Net value – Residual value

Distribution of the fiscal year charge on the periods

When the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods as follows:

Period depreciation expenditure p = Depreciation value * Depreciation rate
* ( number of months in the period [ max (depreciation start date, discal year start date) - min (depreciation end date, issue date, period end date p) ] / 12 (1) )
- Previous periods depreciation total

(1) When the Specific rule is Based on Fiscal year, it is not value 12 that is retained for the 1st fiscal year, but: Number of months in the period [ Depreciation start date - Fiscal year end date ]

For the last depreciation period, the depreciation expenditure of this last period equals:
Fiscal year depreciation expenditure - Previous periods depreciation total

$..\FCT\SEEINFO$ To comply with the calculation terms relating to this depreciation method, each period of the fiscal year must be equal to 1 month or to a number of complete months: Sage X3 does not check the consistency of this division; it bases itself on the existing division and thus on the number of months included in each defined period.

Examples

1st example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/11/2005
Rate: 14,28 % --> Depreciation duration: 7 years --> Depreciation end date: 31/10/2012

Specific rule: Based on Period

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 238,00	238,00
01/01/2006 – 31/12/2006	9 762,00	(2) 1 428,00	1 666,00
01/01/2007 – 31/12/2007	8 334,00	(2) 1 428,00	3 094,00
01/01/2008 – 31/12/2008	6 906,00	(2) 1 428,00	4 522,00
01/01/2009 – 31/12/2009	5 478,00	(2) 1 428,00	5 950,00
01/01/2010 – 31/12/2010	4 050,00	(2) 1 428,00	7 378,00
01/01/2011 – 31/12/2011	2 622,00	(2) 1 428,00	8 806,00
01/01/2012 – 31/12/2012	1 194,00	(3) 1 194,00	10 000,00

(1) (10 000,00 * 14,28%) * 2 / 12 = 238

(2) (10 000,00 * 14,28%) * 12/12 = 1 428

(3) 10 000,00 – 8 806,00 = 1 194,00 since the depreciation end date (31/10/2012) is to be found in the fiscal year.

Distribution of the 2005 fiscal year charge:

Period	Due period	Previous periods depreciation total	Period depreciation expense
01/11/2005 – 30/11/2005	1 / 12	0,00	(1) 119,00
01/12/2005 – 31/12/2005	2 / 12	119,00	(2) 119,00
2005 fiscal year total			238,00

Distribution of the 2012 fiscal year charge:

Period	Due period	Previous periods depreciation total	Period depreciation expense
01/01/2012 – 31/01/2012	1 / 12	0,00	(1) 119,00
01/02/2012 – 29/02/2012	2 / 12	119,00	(2) 119,00
01/03/2012 – 31/03/2012	3 / 12	238,00	119,00
01/04/2012 – 30/04/2012	4 / 12	357,00	119,00
01/05/2012 – 31/05/2012	5 / 12	476,00	119,00
01/06/2012 – 30/06/2012	6 / 12	595,00	119,00
01/07/2012 – 31/07/2012	7 / 12	714,00	119,00
01/08/2012 – 31/08/2012	8 / 12	833,00	119,00
01/09/2012 – 30/09/2012	9 / 12	952,00	119,00
01/10/2012 – 31/10/2012		1 071,00	(3) 123,00
2005 fiscal year total			1 194,00

(1) (10 000,00 * 14,28%) * 1/12 – 0 = 119,00

(2) (10 000,00 * 14,28%) * 2/12 – 119,00 = 119,00

(3) 1 194,00 – 1 071,00 = 123,00 since the depreciation end date (10/31/2012) is to be found in this period [10/01/2012 – 10/31/2012]

2nd example

Gross value: 10 000
Residual value: 0
Depreciation start date: 01/12/2005
Rate: 30.03 % --> Depreciation duration: 3.33 years --> Depreciation end date: 31/03/2009
Specific rule: Based on Period
Particularities: asset issue on 02/25/2009 --> Effective issue date: 01/31/2009

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10 000,00	(1) 250,25	250,25
01/01/2006 – 31/12/2006	9 749,75	(2) 3 003,00	3 253,25
01/01/2007 – 31/12/2007	6 746,75	(2) 3 003,00	6 256,25
01/01/2008 – 31/12/2008	3 743,75	(2) 3 003,00	9 259,25
01/01/2009 – 31/12/2009	740,75	(3) 246,92	9 506,17

(1) (10 000,00 * 30,03%) * 1 / 12 = 250,25

(2) (10 000,00 * 30,03%) * 12/12 = 3 003,00

(3) 740,75 * 1/3 = 246,92 since the effective issue date for the asset is 01/31/2009 and its depreciation end date is 03/31/2009: 1 depreciation month is thus retained out of the 3 residual ones.

Distribution of the 2009 fiscal year charge:

Period	Due period	Previous periods depreciation total	Period depreciation expense
01/01/2009– 31/01/2009	1 / 12	0,00	246,92
01/02/2009 – 28/02/2009	2 / 12	246,92	0,00
…		246,92	0,00
2009 fiscal year total			246,92

3rd example

Gross value: 120 000
Residual value: 0
Depreciation start date: 01/07/2004
Rate: 14,28 % --> Depreciation duration: 7 years --> Depreciation end date: 31/12/2010
Specific rule: Based on Fiscal year

Fiscal year	Depreciation net value	Fiscal year charge	Fiscal year total
01/01/2004 – 31/12/2004	120 000,00	(1) 17 136,00	17 136,00
01/01/2005 – 31/12/2005	102 864,00	(1) 17 136,00	34 272,00
01/01/2006 – 31/12/2006	85 728,00	(1) 17 136,00	51 408,00
01/01/2007 – 31/12/2007	68 592,00	(1) 17 136,00	68 544,00
01/01/2008 – 31/12/2008	51 456,00	(1) 17 136,00	85 680,00
01/01/2009 – 31/12/2009	34 320,00	(1) 17 136,00	102 816,00
01/01/2010 – 31/12/2010	17 184,00	(2) 17 184,00	120 000,00

(1) Specific rule = Based on Fiscal year implies a complete depreciation expenditure for the acquisition fiscal year: 120 000 * 14,28% = 17 136,00
(2) (120 000,00 – 102 816,00) = 17 184,00 since the depreciation end date (31/12/2010) is to be found in this fiscal year.

Distribution of the 2004 fiscal year charge: = Acquisition fiscal year

Period	Previous periods depreciation total	Period depreciation expense
01/01/2004 – 31/01/2004		0,00
… - …	0,00	0,00
01/06/2004 – 30/06/2004	0,00	0,00
01/07/2004 – 31/07/2004	0 ,00	2 856,00
01/08/2004 – 31/08/2004	2 856,00	(4) 2 856,00
01/09/2004 – 30/09/2004	5 712,00	2 856,00
01/10/2004 – 31/10/2004	8 568,00	2 856,00
01/11/2004 – 30/11/2004	11 424,00	2 856,00
01/12/2004 – 31/12/2004	14 280,00	2 856,00
2004 fiscal year total		17 136,00

(4) 17 136,00 * (1/6th) = 2 856,00 since the complete depreciation expenditure for the fiscal year 17 136,00 is ditributed over the hlding months, i.e. 6 months.

Distribution of the 2005 fiscal year depreciation expenditure if the asset has been issued on 05/15/2005, though the current period is [05/01/2005 – 05/31/2005]

Period	Previous periods depreciation total	Period depreciation expense
01/01/2005 – 31/01/2005		(1) 1 428,00
01/02/2005 – 28/02/2005	1 428,00	(2) 1 428,00
01/03/2005 – 31/03/2005	2 856,00	1 428,00
01/04/2005 – 30/04/2005	4 284,00	1 428,00
01/05/2005 – 31/05/2005	5 712,00	(3) - 5 712,00
01/06/2005 – 30/06/2005	0,00	0,00
01/07/2005 – 31/07/2005	0,00	0,00
01/08/2005 – 31/08/2005	0,00	0,00
01/09/2005 – 30/09/2005	0,00	0,00
01/10/2005 – 31/10/2005	0,00	0,00
01/11/2005 – 30/11/2005	0,00	0,00
2005 fiscal year total		0,00

(1) (120 000 * 14,28% * 1/12) = 1 428,00
(2) (120 000 * 14,28% * 2/12) – 1 428,00 = 1 428,00
(3) 0,00 - 5 712,00 = - 5 712,00 for the depreciation expenditure for the issue fiscal year is 0, the depreciation expenditures for closed periods have thus to be reused.

Point de départ de l'amortissement
Durée
Taux
Date de fin d'amortissement
Prorata temporis
Dotation aux amortissements