DDB
An asset's depreciation for a period by the declining balance at a factor (2: double), never below its salvage value.
Group: Financial. Compatible with DAX.
Syntax
DDB ( <cost>, <salvage>, <life>, <period> [, <factor>] )| Parameter | Type | Description |
|---|---|---|
cost | Number | What the asset cost. |
salvage | Number | What it is worth at the end of its life. |
life | Number | How many periods the asset is used: years, or months for a monthly schedule. |
period | Number | The period asked about, in the same unit as life. |
factor | Number optional | How fast the value declines: 2 (double-declining balance) when left out. |
Returns
Number. The depreciation for that period.
Remarks
- Each period takes factor / life of the value left at its start, but never so much that the value falls below salvage.
- It never switches to straight line, so a small amount can be left for the last period.
VDBswitches when straight line gives more. - A negative cost or salvage, a life, factor or period of 0 or less, or a period after life, is an error.
Examples
A delivery van over five years
450,000, worth 50,000 at the end: 40 % of the value left each year, until the fifth year can take only what is above salvage.
EVALUATE
ADDCOLUMNS (
SELECTCOLUMNS ( GENERATESERIES ( 1, 5 ), "Year", [Value] ),
"Depreciation", DDB ( 450000, 50000, 5, [Year] )
)
ORDER BY [Year]| Year | Depreciation |
|---|---|
| 1 | 180000 |
| 2 | 108000 |
| 3 | 64800 |
| 4 | 38880 |
| 5 | 8320 |