Calculation of obsolescence

If there has been no purchase of a particular item for a while the DSM System can automatically assign the item with an obsolescence percentage, which shows the extent to which the item is obsolete.

A provision of the obsolete share of the inventory value can also be posted. Provided that an obsolescence profile has been applied to the product card, the item can be included in the obsolescence calculation.

If any goods are to be treated specially, these must be applied to another obsolescence profile code. For example, there may be goods that must be obsolete regardless of the latest purchase date. An alternative obsolescence profile code is created for these goods, for instance with a formula 1D = 100%.

The obsolescence calculation can also make age write-downs on machines. The bookkeeping of the write-down is not specified on the machine but is posted as a total provision. The calculation can automatically form financial items specified per item dimension and per item location dimension. A percentage rate is calculated independently of location, type etc., but can be specified per location.

Obsolete calculation of machines takes place on the individual machine based on the purchase date of the item (which is calculated per serial number on the item). If there is no purchase item for the machine, the field is actually used on the machine card.