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Slide notes: We will now look at how we define Depreciation Categories, and we select the option from File Maintenance at the Asset Menu.

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Slide notes: A Depreciation Code has a short Key of our own design, and a Description so it can easily be recognized on lookups. Then it has a primary type that indicates the method of the Depreciation, and it has an indicator that is either Maximum Units or Percentage to apply, but not both, and dependent on the Depreciation Type. This example is one of Immediate Write-Off. That means that when Depreciation is 1st calculated, then the entire Asset Item will be fully depreciated in 1 Period. That's why the percentage is also indicated as 100%.

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Slide notes: Our next example is that of 'straight line' Depreciation, and this is the most common type used. We can have separate objects for all the different percentages we need to apply. In this case, the Annual Depreciation is 10%. Note that the Depreciation percentage specified is Annual, and not Monthly.

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Slide notes: Our next example is Unit Depreciation. We use this type of Depreciation when an Asset must depreciate based on consumption, usage, units used, etc. In other words, if we apply it to a Vehicle, we may use the unit of Kilometers, for example, and the maximum units we specify on the Depreciation Category is the point where full depreciation will be reached.The Units can also be hours or some other unit, depending on the Asset type.

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Slide notes: Note that when we use Unit Depreciation, then there is no Annual Percentage for depreciation, because depreciation will be calculated on the basis of the Meter readings for the Asset.

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