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.
  1. Go to the
    Depreciation
    tab in the asset detail.
  2. Enter the cost/basis for the asset.
  3. Select
    Method
    , then
    Units of production
    . The title of the
    Life
    field changed to
    Life/Cur Yr Units
    , and the title of the
    ADS Life
    field changed to
    ADS Life/Tot Units
    .
  4. Enter the current-year usage for the asset in
    Life/Cur Yr Units
    .
    note
    You 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.
  5. Enter the total units for the asset in
    ADS Life/Tot Units
    .
    note
    You 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.
  6. If the asset is a prior-year asset, enter any prior depreciation taken in the
    Prior Depreciation
    field.
  7. Select
    Done
    to return to the
    Asset List
    window.

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