How is depreciation calculated - Average Annual Value

How is depreciation calculated when using a depreciation basis of Average Annual Value?

Capital Assets

Informational

1. Remaining Depreciation principal = ((SOY value + Current book value) / 2) + LTD accumulated depreciation
   1. Please note that the SOY value used for the first year of depreciation will be $0.00 by design
2. Use the Remaining depreciation principal from step 1 in the calculation for whichever depreciation method is set on your asset:  Master Article - How is depreciation calculated

• Depreciation basis is specified on the subclass code
• Before depreciating for a new year, make sure assets have been fully processed for the prior year:  Processing assets for year end close