<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000193" xml:lang="en">
   <Header>
      <Title>Calculating Annuity Depreciation</Title>
      <Keyword type="header" order="d1e1655695">
         <Level1>Annuity</Level1>
         <Level2>calculation</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1655700">
         <Level1>Calculating</Level1>
         <Level2>annuity</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Annuity is a method
		commonly used to meet European requirements. Similar to the concept of a loan,
		the amount recorded for depreciation is based on the interest rate. The amount
		of depreciation increases over the life of the asset. The interest amount is
		calculated in the Calculatory book only, otherwise, it is ignored.</Paragraph>
      <Paragraph>The depreciation for an
		annuity method is calculated as follows:</Paragraph>
      <Paragraph>
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                   SRC="../images/tr_graph_om000193.gif"
                   alt="[...]"/>
      </Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>Depreciation = annuity - (i * book value start of year)</Paragraph>
      </Formula>
      <Paragraph>where:</Paragraph>
      <Paragraph>i = Interest rate percentage / 100</Paragraph>
      <Paragraph>n = Annuity number of years</Paragraph>
   </GeneralSection>
</ManualTopic>