Lets consider that your estimated units of product for your asset is 1000 over its life. In the screen, you would set the estimate value to that for the period the asset was acquired. In this example, period 01-2018 as seen below:
The asset must be created with a Depreciation method of UOP. The asset’s life then become the total of all estimated values over time. You can see this in the useful life field below.
Each Month before depreciation is run, the user must go into the Units of Product entry screen and enter the units for the month. In this scenario, each time the asset is depreciated it is 1/7 of the units. So in this case you would divide the 1000 unit estimate by 7 and that would be the monthly units.
The depreciation process is run, and the result the monthly depreciation expense multiplied by the units entered for the month above. So in this case it would be 5000(cost)/1000(estimated units) x 142.85(actual units) = $714.25.
