To define a custom method for calculating depreciation, complete the following steps.
- Open the Asset List window for an activity.
- In the Asset List window, choose Setup > Custom Methods.
- Click the Add button to open the Add Custom Method dialog.
- Enter a name for the custom method.
- Specify the period convention you want to use. (For a description of each field, press F1 to view the dialog overview topic.)
- Click Continue to open the Annual Rates dialog.
- Enter the depreciation percentages for up to 40 years. (Note that as you enter rates, the rate total is displayed at the bottom of the dialog.)
- Click OK. The custom method is added to the list in the Custom Methods dialog.
- Click Done.
The custom method is now available for selection from the Method field on the Depreciation tab of the Asset Detail dialog.
- You can define up to 99 custom methods of calculating depreciation.
- These methods are available to all clients, not just the open client.
Note: If you want your custom method to appear in the Method/Life Wizard, you must first add a new asset class and choose your custom method for that class. See Setting up a new asset class in the Method/Life Wizard.
If you use custom asset classes you will be responsible for updating asset classes, methods, and lives for any tax law changes.