Easy Explanation Notes with Examples

VDB function in Excel

Use

The VDB function calculates the depreciation of an asset, for a specified given period, by using any selected depreciation method, such as the double declining balance method etc. The abbreviation VDB stands for variable declining balance. It is a Financial function and first introduced in the Excel 2007 version.

Syntax

VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])

The VDB function has the following arguments:

cost – Required. The initial cost on which the asset purchased.

salvage – Required. The remaining value of the asset when it is fully depreciated.

life – Required. The estimated useful life of the asset.

start_period – Required. The starting period for which you want to calculate the depreciation.

end_period – Required. The ending period for which you want to calculate the depreciation.

[factor] – Optional. The depreciation method to be used for the calculation. If omitted, the function takes the default value of 2 (denotes as the double declining balance method).

[no_switch] – Optional.  When the calculated depreciation is greater than declining balance calculation, the [no_switch] logical argument specifies whether to select straight-line depreciation or not.  It has the following possible values:

TRUE Do not switch to the straight-line depreciation method.
FALSE or omitted Switch to the straight-line depreciation method.

Examples

1- Calculating depreciation for the first day.

Note that for calculation of depreciation in days, we first need to take the asset’s life in days i.e. C6*365.

1- Calculating depreciation for the first month.

Function Errors

Errors Occurs if
#NUM! The supplied cost or salvage <0.
The supplied life ≤ 0.
The supplied start period is >  the supplied end period.
The supplied period > life.
#VALUE! The supplied arguments are non-numeric.

Related Functions

DB function calculates depreciation of an asset by using fixed-declining balance method over the useful life of the asset.

DDB function calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user.

SLN function uses the straight-line depreciation method to find out the depreciation of an asset for one period.

SYD function is a Financial function, which returns the sum-of-years’ digits depreciation of an asset for a specific period.

DB function calculates depreciation of an asset by using the fixed-declining balance method over the useful life of the asset.

AMORLINC function calculates depreciation of an asset, on a prorated basis, for a specified accounting period.

AMORDEGRC Function returns the depreciation of an asset for each accounting period till a useful life of an asset.




Copyright © 2016 - 2018 Explainry.com | All Rights Reserved