Odoo is the world's easiest all-in-one management software.
It includes hundreds of business apps:
The formula is:
NB-(NB*(0.60^(1/12)))
This equates to reducing the balance by 40% each year, instead of the straight line method.
For an Asset purchased at $21,600 and depreciated monthly over 36 months, the first five entries would be:
$20,669.81 (depreciated down $900.19)
$19.837.14 (depreciated down $862.67)
$19,010.42 (depreciated down $826.72)
$18,218.15 (depreciated down $792.27)
$17,458.90 (depreciated down $759.25)
Terminology has been improved in latest Odoo versions.
Linear = Straight Line
Degressive = Declining
Accelerated Degressive = Declining Then Straight Line
A graph might be easier to understand those concepts.
You can use the degressive method.
You just need to minus the multiplier from 1 like this:
1-(0.6^(1/12)) = 0.04167547137
Then plug this new multiplier into the Degressive Factor field:
The first five entries:
Complete depreciation schedule:
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Asset Depreciation Calculation
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