Use the units of production method
The Units of Production method calculate depreciation based on an assets usage rather than the passage of time. Do the following to depreciate an asset using the units of production method.
- Go to theDepreciationtab in the asset detail.
- Enter the cost/basis for the asset.
- SelectMethod, thenUnits of production. The title of theLifefield changed toLife/Cur Yr Units, and the title of theADS Lifefield changed toADS Life/Tot Units.
- Enter the current-year usage for the asset inLife/Cur Yr Units.noteYou may measure the current-year units in a variety of ways. For example, 15,000 barrels of oil produced in the current year from a well may produce 100,000 barrels in its life; or 25,000 widgets produced in the current year from a machine that may produce 500,000 widgets over its life.
- Enter the total units for the asset inADS Life/Tot Units.noteYou may measure the total units in a variety of ways. For example, 15,000 barrels of oil produced in the current year from a well may produce 100,000 barrels in its life; or 25,000 widgets produced in the current year from a machine that may produce 500,000 widgets over its life.
- If the asset is a prior-year asset, enter any prior depreciation taken in thePrior Depreciationfield.
- SelectDoneto return to theAsset Listwindow.
