DECLINING-BALANCE METHOD OF DEPRECIATION title: declining-balance method of depreciation (FI-AA) (SAP Library - Glossary)
DECLINING-BALANCE METHOD OF DEPRECIATION category: Asset Accounting (FI-AA)
DECLINING-BALANCE METHOD OF DEPRECIATION explained:
An annual calculation of depreciation amounts that are reduced by a constant percentage.
The constant percentage is calculated from the useful life and a multiplication factor, and then multiplied by the asset net book value.
For mathematical reasons, the net book value can never reach zero using this method.
Therefore, following pre-defined criteria (for example, net book value is less than straight-line depreciation), the SAP System changes from this method to straight-line or complete depreciation.
More terms such as declining-balance method of depreciation in Dictionary D.
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