<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000303" xml:lang="en">
   <Header>
      <Title>To use Annuity depreciation</Title>
      <Keyword type="header" order="d1e1979797">
         <Level1>Depreciation by annuity</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>A depreciation method
		that is based on interest rates and that meets European requirements. During
		the asset life, the depreciation amount increases. The amount is calculated in
		the calculation book. If there is no depreciation amount in the calculation
		book, depreciation is not taken into account. The annuity depreciation is
		calculated as follows:</Paragraph>
      <Paragraph>Annuity = Basis * i * {(
		1 + i ) to the power n} / ({( 1 + i ) to the power n} - 1 )</Paragraph>
      <Paragraph>Depreciation = Annuity -
		i * Basis of Year</Paragraph>
      <Paragraph>where:</Paragraph>
      <Paragraph>Basis = book value at the first year</Paragraph>
      <Paragraph>Basis of Year = book value at the beginning of the actual
		year</Paragraph>
      <Paragraph>i = interest percentage / 100</Paragraph>
      <Paragraph>n = number of years with annuity depreciation</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>Basis = 200,000</Paragraph>
         <Paragraph>i = 8 % / 100 = 0.08</Paragraph>
         <Paragraph>n = 5 years</Paragraph>
         <Paragraph>Annuity = 200,000 * 0.08 * 1.08 5 / ( 1.08 5 - 1) = 50,091.29</Paragraph>
         <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
            <THEAD noTR="1">
               <TR no="1" isLast="true">
                  <TD rowspan="1" colspan="1">Year</TD>
                  <TD rowspan="1" colspan="1">Annuity
				  calculation</TD>
                  <TD align="right" rowspan="1" colspan="1">Annuity</TD>
               </TR>
            </THEAD>
            <TBODY noTR="6">
               <TR no="1" isLast="false">
                  <TD rowspan="1" colspan="1">1</TD>
                  <TD rowspan="1" colspan="1">50,091.29 -
				  0,08 * 200,000.00</TD>
                  <TD align="right" rowspan="1" colspan="1">34,091.29</TD>
               </TR>
               <TR no="2" isLast="false">
                  <TD rowspan="1" colspan="1">2</TD>
                  <TD rowspan="1" colspan="1">50,091.29 - 0.08 * 165,908.71</TD>
                  <TD align="right" rowspan="1" colspan="1">36,818.59</TD>
               </TR>
               <TR no="3" isLast="false">
                  <TD rowspan="1" colspan="1">3</TD>
                  <TD rowspan="1" colspan="1">50,091.29 - 0.08 *
				  129,090.12</TD>
                  <TD align="right" rowspan="1" colspan="1">39,764.08</TD>
               </TR>
               <TR no="4" isLast="false">
                  <TD rowspan="1" colspan="1">4</TD>
                  <TD rowspan="1" colspan="1">50,091.29 - 0.08 *
				  89,326.04</TD>
                  <TD align="right" rowspan="1" colspan="1">42,945.21</TD>
               </TR>
               <TR no="5" isLast="false">
                  <TD rowspan="1" colspan="1">5</TD>
                  <TD rowspan="1" colspan="1">50,091.29
				  - 0.08 * 46,380.83</TD>
                  <TD align="right" rowspan="1" colspan="1">46,380.82</TD>
               </TR>
               <TR no="6" isLast="true">
                  <TD rowspan="1" colspan="1">Sum</TD>
                  <TD rowspan="1" colspan="1"/>
                  <TD align="right" rowspan="1" colspan="1">199,999.99</TD>
               </TR>
            </TBODY>
         </TABLE>
      </ExampleSection>
   </GeneralSection>
</ManualTopic>