Examples of depreciation patterns

The specification of year, month, and percent in the Depreciation pattern screen group on the Basic Info tab of the Data -> Equipment Units -> Setup -> Value Depreciation screen depends on which method you use to depreciate the value of equipment units assigned to the value depreciation ID.

Under the straight-line method, the value depreciates by the same percentage each month. Under the accelerated method, the value decreases by a smaller percentage each month.

Straight-line depreciation

The following sample entries specify a straight line depreciation method, in which the value of the equipment unit depreciates 1.042% each month during the first year of service.

Year Month Percent

1       1       1.042

1       2       1.042

1       3       1.042

Accelerated depreciation

The following sample entries specify an accelerated depreciation method, in which the value of the equipment unit depreciates by a smaller percentage each month during the first year of service. Eventually, by the eighth year of service, the depreciation percentage is considerably smaller than during the first year.

Year Month Percent

1       1       1.5

1       2       1. 2

1       3       1.1

8       12       .33