Reducing (or declining) balance depreciation
We currently have an asset forecast module set up that calculates the NBV of assets over time which currently only uses straight line depreciation so it's reducing by the same value per month...simple.
However we have just changed our depreciaition policy to use reducing/declining balance depreciation and I am not sure how to use the profile formula.
So for example we currently have an asset list with it's NBV and we want to calculate 14% reducing balance over time. So for the first year its 14% of the purchase NBV but when it comes to year 2 how does it know to take 14% of the NBV at the end of year 1?
And I need this to keep calulating year on year.
Attached example of straight line depreciation working. Wanted to add a row and say if reducing balance then do this....