Configure formula-based depreciation methods
/visma-net-erp/help/fixed-assets/manage-fixed-asset-depreciation/configure-formula-based-depreciation-methods
section
In the Depreciation methods (FA202500) window, you can configure a formula-based depreciation method by using any of the available depreciation calculation methods.
2026-02-19T17:09:06+01:00
# Configure formula-based depreciation methods
In the Depreciation methods (FA202500) window, you can configure a formula-based depreciation method by using any of the available depreciation calculation methods.
For more information: [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/).
## Configure the straight line depreciation method
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Straight line**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. Optional: In the **Averaging convention** field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of. The following options are available: **Full period**, **Mid period**, **Next period**, **Modified half period**, **Modified half period 2**, **Full quarter**, **Mid quarter**, **Full year**, **Mid year**, and **Full day**.
1. Optional: Select the **Annual accounting** check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
1. Click .
## Configure the declining balance depreciation method
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Declining balance**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. In the **DB multiplier** field, enter the value (that is, the percentage of depreciation acceleration that you have decided to use in this method). For details, see the description of the **Declining balance** calculation method available the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. Optional: Select the **Switch to SL** check box to configure the system to switch the calculation method to **Straight line** in order to depreciate an asset to zero or to its salvage value (if specified).
1. Optional: In the **Averaging convention** field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of. The following options are available: **Full period**, **Mid year**, **Mid quarter**, and **Full day**.
1. Optional: Select the **Annual accounting** check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
1. Click .
## Configure the sum of the years' digits depreciation method
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Sum of the years' digits**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. Optional: In the **Averaging convention** field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of. The following options are available: **Full period** and **Full day**.
1. Select the **Annual accounting** check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
1. Click .
## Configure the remaining value depreciation method
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Remaining value**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. Optional: In the **Averaging convention** field, select the convention that determines how fixed assets must be depreciated for the financial year within which they are acquired or disposed of. The following options are available: **Full period**, **Mid period**, **Next period**, **Modified half period**, **Modified half period 2**, **Full quarter**, **Mid quarter**, **Full year**, **Mid year**, and **Full day**.
1. Optional: Select the **Annual accounting** check box to configure the system to calculate the depreciation amount on a yearly basis, so that the system will calculate the depreciation expense for a year and then divide this amount evenly by the number of periods in a year.
1. Click .
## Configure the Dutch method 1
> [!NOTE]
> The formula used by the system to calculate the depreciation expenses by this depreciation method is described in **Depreciation methods**.
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Dutch method 1**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. Leave the **Annual accounting** check box cleared.
1. Click .
## Configure the Dutch method 2
> [!NOTE]
> The formula used by the system to calculate the depreciation expenses by this depreciation method is described the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/).
1. Go to the [Depreciation methods (FA202500)](/visma-net-erp/help/fixed-assets/fixed-asset-windows/depreciation-methods-fa202500/) window.
1. In the **Depreciation method ID** field, type the name of the new method.
1. In the **Calculation method** field, select **Dutch method 2**.
1. Optional: In the **Description** field, enter a useful description of the depreciation method that you are configuring. It will allow you to easily find this method in the list of available depreciation methods.
1. In the **Percent per year** field, specify the value (in percent) that defines which part of the asset net book value should be depreciated for one year.
1. Leave the **Annual accounting** check box cleared.
1. Click .
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