French Derogatory Depreciation
Derogatory depreciation is calculated from the difference between the tax and accounting depreciation amount over the asset's useful life. You can review the depreciation amount on the Review Derogatory Depreciation page. When the depreciation amount is finalized, the system generates the Derogatory Depreciation Histories. Corresponding derogatory depreciation journals are created to record the difference between the Accounting and Derogatory Tax methods.