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title description author ms.date ms.topic audience ms.reviewer ms.search.region ms.author ms.search.validFrom ms.dyn365.ops.version ms.search.form
Fixed assets depreciation methods for China
This article describes the depreciation method set up for legal entities in China.
AdamTrukawka
03/21/2018
article
Application User
johnmichalak
China (PRC)
atrukawk
2016-11-30
Version 1611
AssetParameters

Fixed assets depreciation methods for China

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This article describes the depreciation method set up for legal entities in China.

The sum of the years' digits method of depreciation (SYD) is one of the accelerated depreciation techniques that is based on the assumption that assets are generally more productive when they are new and their productivity decreases as they become old. The formula to calculate depreciation under SYD method is:

SYD Depreciation = Depreciable base × (Remaining useful life/Sum of the  years digits)

To create a depreciation profile:

  1. On the Fixed assets parameters page, select the SYDM and DRBM depreciation methods.
  2. Create a new depreciation profile. Use the method of either Sum year digits or Double reducing balance.
  3. Create a book for the depreciation method, use either Sum year digits or Double reducing balance.

For more information, see Setup fixed asset depreciation allocation.

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