Creating Custom Depreciation Methods

If your company uses nonstandard depreciation methods, you can create custom depreciation methods. You can use custom methods to depreciate assets for up to 60 years with a specified percentage for each year. The default for the averaging convention in the year of disposition is full month, but you can select a different averaging convention. You can create over 1200 different custom depreciation methods.

Note: The averaging convention for the placed-in-service year must be calculated as part of the first year percentage.

To create a custom depreciation method

1. Select Customize/Depreciation Methods from the menu bar. The system displays the Custom Depreciation Methods window.
2. Enter a two-character code and a brief description of the method, then select the Add button. The system displays the Depreciation Method Setup window.
3. Complete the Depreciation Method Setup window, then select OK. The application returns to the Custom Depreciation Methods window.
4. Select the Close button on the Custom Depreciation Methods window. The system automatically adds your custom method to the SmartList of available depreciation methods.