When calculating depreciation on cars, it may be necessary to place a threshold limit as to the value of the vehicle on which depreciation is to be calculated. Certain Government Tax Departments will apply these limits to different financial periods. Usually, this only applies to luxury cars and most users will not need to use this screen. The limit changes each financial year as it is indexed to inflation. If this limit applies to your system you should use this function when you set up your system and after each End of Year.
The limits then set in this maintenance facility are used when calculating depreciation on particular motor vehicles for the related periods. The depreciation limits are based upon the year of purchase of the vehicle as set up in the Motor Vehicle Depreciation Cost Limits – Table.
1. Select the Motor Vehicle Depreciation Cost Limits option from the maintenance menu options.
2. Once you have made this choice you will be presented with the Motor Vehicle Depreciation Cost Limits dialogue box, which will allow you to define your Motor Vehicle Depreciation Cost Limits.