TRAX MANUALS > G/L Interface > G/L Interface Module > G/L Interface, Update Menu > Monthly Financial Procedure - Running Fixed Asset Depreciation > Setting Default Depreciation for Parts > Accelerated vs Straight Line Depreciation

There are two methods for depreciation that can either be configured for individual parts or for entire P/N Categories: "straight line" and "accelerated." While the straight line method is the most commonly used method in TRAX, the accelerated option is useful when a part F/A is paired with a specific, older (and more depreciated) aircraft.

• Straight Line: This method depreciates components on their own schedule and is not linked to an aircraft’s depreciation schedule. This option is linked to a part via the P/N Category. All parts with the same P/N Category (and Depreciation configuration) will depreciate on it's own timetable as they are not linked to an aircraft that has been depreciating in value for a longer amount of time. As each F/A with it's own unique depreciation timetable will depreciated on its own terms (counting from the part's purchase or initial load), this method is considered "straight line." (A Depreciation Code can also be used to configure straight line depreciation, but the code's Depreciation Date should not be utilized.)
• Accelerated: This method links a younger component with the older airframe it’s installed on so that the component reaches the same residual value as the aircraft (the A/C's depreciation end point) at the same end month. Because the F/A record will depreciate at a quicker rate than a straight line, this method of depreciation is considered "accelerated." The Depreciation Date of the Depreciation Code must be utilized. Depreciation Codes are linked to specific parts via the P/N Master, Costing Tab. (A Depreciation Code with Depreciation Date can be used for a P/N Category, but this Depreciation Date configuration is typically used for specific parts since only specific parts will be linked to a specific Aircraft tail number.)

  Note: The accelerated depreciation method may not be allowed in all countries. Check with local government rules and regulations before implementing this accounting option.