---
title: "Depreciation methods (FA202500)"
description: "The depreciation method determines how the asset cost is allocated over the asset useful life."
lang: en
languages:
  en: https://docs.vismasoftware.no/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/index.md
lastmod: 2026-02-19
---

> Documentation index: https://docs.vismasoftware.no/visma-net-erp/help/fixed-assets/fixed-asset-windows/llms.txt


# Depreciation methods (FA202500)

Last modified February 19, 2026

> The depreciation method determines how the asset cost is allocated over the asset useful life.


This topic provides information about the elements in this window in Visma Net, such as fields, field values, buttons, and check boxes.

The depreciation method determines how the asset cost is allocated over the asset useful life.

Visma Net provides multiple built-in depreciation methods, and you can also configure
custom depreciation methods.
In this window, you can create, delete, and edit the
formula-based depreciation method or the depreciation methods that use
formulas to calculate the depreciation during the entire useful life of an
asset.

## Search line in list window

If you are in the list window, the first line in the table is a search line. Each column has a search field which you can click to search for or filter on specific values and narrow down the displayed table rows. You can search and filter in as many columns as you need to, to only display the results you want to view.

There are two types of search fields:

+ White: here you can type a specific search term to display results in this column containing this exact value. If you search on several (partial) words, you can separate them by a space or **%** and get different results:

  + space: the result contains the words in any order,
  + **%**: the result contains the words in the specific order, and the **%** functions as a wildcard as well.
+ Grey: you can click this to open the column filter pop-up window where you can filter the results for this column.


## The top part

In this area, you can enter information for a new depreciation method, or view or edit the information for an existing one.

<table class="vismanet-table">
  <colgroup>
    <col class="vismanet-table__col--key">
    <col>
  </colgroup>
<thead class="vismanet-table__head">
  <tr class="vismanet-table__header-row">
<th class="vismanet-table__cell vismanet-table__cell--header">Element</th>
<th class="vismanet-table__cell vismanet-table__cell--header">Description</th>
</tr>
</thead>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Depreciation method ID</td>
<td class="vismanet-table__cell">The identifier of the depreciation method.</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Calculation method</td>
<td class="vismanet-table__cell"><p>The calculation method used by the selected depreciation method. The following options are available:</p>
<ul>
<li><strong>Straight line</strong></li>
<li><strong>Declining balance</strong></li>
<li><strong>Sum of the years&rsquo; digits</strong></li>
<li><strong>Remaining value</strong></li>
<li><strong>Dutch method 1</strong></li>
<li><strong>Dutch method 2</strong></li>
</ul></td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Description</td>
<td class="vismanet-table__cell">A brief description of the depreciation method.</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Declining balance multiplier</td>
<td class="vismanet-table__cell"><p>The percentage of depreciation acceleration used by the <strong>Declining balance</strong> calculation method for calculating the depreciation rate, which, in turn, is required for calculating the depreciation expense per a year.</p>
<p>Usually, the percent of depreciation acceleration is considered as 125%, 150%, 175%, or
200%.</p>

    <div class="admonition admonition-note" role="note">
    <div class="admonition-title">
        
        Note
        
    </div>
    <div class="admonition-body">
        <p>The maximum value to be entered in this field is 99,999.0000.</p>
    </div>
    </div>

</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Switch to straight line</td>
<td class="vismanet-table__cell">A check box that you select to direct the system to switch from the <strong>Declining balance</strong> calculation method to the <strong>Straight line</strong> method, when the depreciation amount calculated by using the <strong>Straight line</strong> method is greater than the depreciation amount calculated for the <strong>Declining balance</strong> method.</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Percent per year</td>
<td class="vismanet-table__cell">The percent of fixed asset depreciation for one year for the <strong>Dutch method 2</strong> calculation method with the <strong>Yearly accountancy</strong> check box selected.</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Source</td>
<td class="vismanet-table__cell"><p>The source of the selected depreciation method. The following
options are available:</p>
<dl>
<dt>Predefined</dt>
<dd>A depreciation method predefined by the system. The settings of this method cannot be edited by a user.</dd>
<dt>Custom</dt>
<dd>A depreciation method configured by a user.</dd>
</dl></td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Averaging convention</td>
<td class="vismanet-table__cell"><p>The way fixed assets will be depreciated for the period within
which the asset was acquired or disposed.
You should select an
averaging convention depending on the depreciation method you
specified.</p>
<p>The following options, described more fully in <a href="/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/about-averaging-conventions/index.md">About averaging conventions</a>, are available: <strong>Full period</strong>, <strong>Mid period</strong>, <strong>Next period</strong>, <strong>Modified half period</strong>, <strong>Modified half period 2</strong>, <strong>Full quarter</strong>, <strong>Mid quarter</strong>, <strong>Full year</strong>, <strong>Mid year</strong>, and <strong>Full day</strong>.</p>
</td>
</tr>

<tr class="vismanet-table__row">
<td class="vismanet-table__cell">Annual accounting</td>
<td class="vismanet-table__cell"><p>A check box that you select to direct the system to calculate the depreciation amount on
a yearly basis.
That is, the system uses the formula specific
for the selected calculation method to calculate the
depreciation expenses per each year.</p>
<p>Then the system spreads this depreciation amount over the financial periods in a year (for example, months) by dividing this amount by the number of periods.</p>
<p>With this check box deselected, the system calculates the deprecation amount for each period (not the whole year) by using the formula specific for the selected calculation method.</p>
</td>
</tr>

</table>


<h2>Related pages</h2><h3>Concepts</h3>
<ul><li><a href="/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/about-depreciation-methods/index.md">About depreciation methods</a></li><li><a href="/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/about-depreciation-configuration/index.md">About depreciation configuration</a></li><li><a href="/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/about-averaging-conventions/index.md">About averaging conventions</a></li>
</ul><h3>Tasks</h3>
<ul><li><a href="/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/configure-formula-based-depreciation-methods/index.md">Configure formula-based depreciation methods</a></li>
</ul>


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