SYS_DEPRECIATION
Depreciation calculation in Weissr in Cash flow model is performed automatically based on inserted expenditure values and depreciation years.
For Capex Strategy calculation result consists of Major capex depreciation for number of years inserted in Asset line and Amount value of Investment plus asset’s Smaller capex ratio amount deprecated with rolling average defined as system constant 5 years (that cannot be changed by user). Value is inflated in case inflation is present.
For Capex Management major capex depreciation is performed on each expenditure line based on inserted depreciation years and sum of monthly outlays. It’s not inflated, nor smaller capex is calculated as it assumed that smaller capex will be inserted as any other expenditure line.
Calculation
Major tax depreciation calculation
Parameters used:
Total investment amount
CS: Amount
CM: Sum of all outlays of a single expenditures line
In Use year or Replacement year
Depreciation years
inserted on each expenditures/asset line in both applications
can be set automatically in settings as default value
CS: defined on Site level in scope grid
CM: defined in Administration > Capex Management > Capex attributes
Formula:
Total investment amount divided by Depreciation years and distributed Depreciation years times from In Use year or replacement year in case of reinvestment
Special cases in Capex Strategy:
in case inflation is enabled and In use year or replacement of an investment is happening in the future, then asset amount that is going to be used in calculation is inflated
when asset has reached it’s end of economic life by getting retired all remaining depreciation amount is set to the year before retired year
if asset Replacement year reduced by In Use year is less than Depreciation years set then actual Depreciation years amount will be the difference not the entered value
same logic applies to Standard life property, in case it is less then Depreciation years entered then it will be used as real Depreciation years
in case Replacement year reduced by In Use year is less than, but Standard life is greater or equals to Depreciation years, then reduced Depreciation years are applied only to the first investment
Minor tax depreciation calculation in scope of SYS_DEPRECIATION in Capex Strategy
SYS_DEPRECIATION in Capex Strategy includes both Major capex depreciation and Minor capex depreciation as well as gets inflated.
Parameters used in Minor capex tax depreciation:
Total investment amount
In Use year
Depreciation years
Small capex ratio defined on Subindustry level in Scope tab
Smaller capex depreciation rolling average constant defined in the system always as 5 years
Formula:
Each individual investment smaller capex amount divided by rolling average (5) distributed for 5 years starting each year until end of economic life of an asset
First smaller capex is calculated in as percentage (Smaller capex ratio) of Total investment amount. Then smaller capex yearly amount is deprecated using rolling average depreciation years defined by system (5 years).
As smaller capex is happening each year until end of asset economic life, then minor capex depreciation is continuing until that year as well.
Special cases in Capex Strategy:
In case inflation is enabled then smaller capex is inflated
when asset has reached it’s end of economic life by getting retired all remaining depreciation amount of all active smaller capex amounts is set to the year before retired year