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<ManualTopic ID="/baanerp/tf/onlinemanual/000305" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Net Book Value (NBV)-oriented depreciation</Title>
		<Keyword><Level1>Depreciation</Level1>
			<Level2>Net Book Value (NBV) oriented</Level2>
		</Keyword>
		<Keyword><Level1>Depreciation and switch to straight line (SL)</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>The Net book-value (NBV) oriented depreciation method is a variant of the declining balance depreciation method.</Paragraph>
		<Paragraph>In this method, the declining balance percentage is set for a period of a year. The computation is as follows:</Paragraph>
		<Paragraph>depreciation amount = net book value * declining percentage / 100</Paragraph>
		<GeneralSection><SectionTitle>U.S. tax books:</SectionTitle>
			<Paragraph>NBV = (Cost - Salvage - Sec179) * (Business Percentage/100) - AD</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<GeneralSection><SectionTitle>Other books</SectionTitle>
		<Paragraph>NBV = Cost - Salvage - AD</Paragraph>
		<Paragraph>Periodic Depreciation = NBV * (Declined Balance Percentage/ 100) * Periods Depreciated/ Periods in Fiscal Year</Paragraph>
		<Paragraph>Daily Depreciation = NBV * (Declined Balance Percentage/100) * Days Depreciated/Days in Fiscal Year)</Paragraph>
		<Paragraph>For MACRS and ACRS, the salvage value is not applied to the depreciation of U.S. tax and commercial books.</Paragraph>
	</GeneralSection>
	<GeneralSection><SectionTitle>Straight-Line calculation</SectionTitle>
		<List><ListIntro>If you use a depreciation method and the <GUIRef href="" role="manual">Switch To SL</GUIRef> check box is selected in the <GUIRef href="/baanerp/tf/fam/tffam7110s000" role="session">Depreciation Method (tffam7110s000)</GUIRef> details session, SSA ERP either applies:</ListIntro>
			<ListItem>The normal Straight-Line calculation.</ListItem>
			<ListItem>The Straight-Line calculation with Remaining Life / Remaining Value.</ListItem>
		</List>
		<Paragraph>SSA ERP applies this calculation according to the <GUIRef href="" role="manual">Straight Line (SL) Switch Criteria</GUIRef> defined in the <GUIRef href="/baanerp/tf/fam/tffam0500m000" role="session">FAM Parameters (tffam0500m000)</GUIRef> session. The switch occurs in the first period in which the straight-line calculation results in a larger depreciation amount than the NBV-oriented depreciation.</Paragraph>
		<List><ListItem>Normal Straight Line:</ListItem>
		</List>
		<Paragraph>Daily Depreciation = NBV * Days Depreciated/ Days in Fiscal Year</Paragraph>
		<Paragraph>Periodic Depreciation = NBV * Periods Depreciated/Periods in Fiscal Year</Paragraph>
		<List><ListItem>Straight Line with Remaining Life / Remaining Value:</ListItem>
		</List>
		<Paragraph>Daily Depreciation = NBV * Days Depreciated/Remaining Life Days</Paragraph>
		<Paragraph>Periodic Depreciation = NBV * Periods Depreciated/Remaining Life Periods</Paragraph>
		<Paragraph>If an asset book in the last period of the asset life has a net book value greater than zero (0), this value is depreciated fully in the last period.</Paragraph>
	</GeneralSection>
</ManualTopic>
