Assets - Depreciation methods available for Assets

The following methods are available:
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​Straight Line - Using the Straight Line method for depreciating assets the posting window requires information to be entered into either the Posting Frequency, Years or Percentage fields. This method of depreciation effectively removes a set percentage from the Bought Value every year/month. The Straight Line method will always reduce the Net Book Value of an asset to zero unless a residual value has been entered. You must confirm that you want to proceed, if you select anything other than straight line depreciation.
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​Reducing Balance - This method of depreciating assets requires information to be entered into the Posting Frequency and Yearly Percentage. This method effectively removes a set percentage from the Net Book Value every time a posting occurs. The Reducing balance method will never reduce the Net Book Value of an asset to zero.
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​Sum of Digits - This method of depreciating assets requires that you specify the number of years, i.e. the expected useful life of the asset. This method operates by calculating the sum of all the years that an asset will be open for and depreciating the asset by a reducing fraction, e.g. If an asset is to be depreciated over 5 years then the annual deprecation amounts will be 5/15, 4/15, 3/15.... of the Bought Value of the asset. The Sum of Digits method will always reduce the Net Book Value to zero unless a residual value has been entered in the User Fields Window.
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​Period Ratio - A proportion of the total depreciation is allocated to each period. This option can only be used if your system is using 12 periods in a year. In Assets, Options, Asset Options in the Periods tab, set the proportion to depreciate by against the relevant periods, e.g against Period 1 enter 1 (representing 1/52 of the bought value), against Period 2 enter 2 (representing 2/52 of the bought value), against Period 3 enter 4 (representing 4/52 of the bought value), and against Period 4 enter 45 (representing 45/52 of the bought value). The sum of the values must add up to 52. The Base Value of an asset using this method is calculated using the value of the next depreciation period.
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​None - No Depreciation is calculated.