What is the Excel AMORDEGRC Function in Excel?

The AMORDEGRC function calculates depreciation for French accounting system assets using the declining balance method with specific coefficient rules =AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis]) Use AskFormulas to generate validated formulas instantly.

How can I optimize Excel AMORDEGRC Function performance?

To optimize Excel AMORDEGRC Function: 1) Use specific ranges instead of entire columns, 2) Avoid volatile functions within Excel AMORDEGRC Function, 3) Consider array formulas for bulk operations, 4) Cache results when possible. AskFormulas automatically applies optimization best practices.

What is the syntax for Excel AMORDEGRC Function?

The Excel AMORDEGRC Function syntax in Excel is: =AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis]). It takes 7 parameter(s): cost (required), date_purchased (required), first_period (required), salvage (required), period (required), rate (required), basis (optional).

Excel AMORDEGRC Function

The AMORDEGRC function calculates depreciation for French accounting system assets using the declining balance method with specific coefficient rules

Excel

Google Sheets

financial

intermediate

Syntax Preview

Excel

Google Sheets

=AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])

Quick Answer

TL;DR

AMORDEGRC function AMORDEGRC function is a specialized Excel function designed for French accounting systems that calculates asset depreciation using the declining balance method (amortissement dégressif). Unlike standard depreciation functions, AMORDEGRC automatically applies French tax law coefficients (1.0, 1.5, 2.0, or 2.5) based on the asset's useful life.

=AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])

cost - the initial purchase price of the asset
date_purchased - the asset's acquisition date
first_period - the end date of the first accounting period
salvage - the estimated residual value
period - the accounting period number
rate - the annual depreciation rate
basis - the optional day count convention

Unlike standard depreciation functions, AMORDEGRC automatically applies French tax law coefficients (1.0, 1.5, 2.0, or 2.5) based on the asset's useful life

Understanding AMORDEGRC Function

Syntax and Parameters Explained

## What is the AMORDEGRC Function?

AMORDEGRC (short for Amortissement Dégressif à Taux Décroissant) is a financial function specifically designed for the French accounting system that calculates asset depreciation using the declining balance method with automatic coefficient application.

## Purpose and Context

The AMORDEGRC function serves a unique purpose in French accounting and tax compliance. France has specific depreciation rules that differ from standard international accounting practices. The function automatically applies tax-advantaged depreciation coefficients based on the asset's estimated useful life, allowing businesses to accelerate depreciation deductions in accordance with French tax law.

## Declining Balance Method

The declining balance method, or méthode dégressive, calculates depreciation by applying a rate to the remaining book value of an asset rather than its original cost. This results in higher depreciation expenses in earlier years and lower expenses in later years, which can provide tax advantages and better match the actual consumption pattern of many assets.

## Automatic Coefficient Rules

One of AMORDEGRC's distinctive features is its automatic application of depreciation coefficients based on asset life:

- Assets with 3-4 years life: coefficient 1.0
- Assets with 5-6 years life: coefficient 1.5
- Assets with more than 6 years life: coefficient 2.0
- Special cases (certain asset types): coefficient 2.5

These coefficients are multiplied by the straight-line depreciation rate to determine the declining balance rate, accelerating depreciation according to French tax regulations.

## When to Use AMORDEGRC vs AMORLINC

Use AMORDEGRC when you need declining balance depreciation with automatic French coefficient application. Use AMORLINC when French regulations require straight-line depreciation or when the declining balance method is not applicable. Many French businesses use AMORLINC for buildings and certain intangible assets, while using AMORDEGRC for equipment, vehicles, and machinery.

## Compatibility Notes

AMORDEGRC is available in Excel 2007 and later versions. Some older versions may require the Analysis ToolPak add-in. Google Sheets does not natively support this function, requiring custom scripts or alternative approaches for French depreciation calculations.

## Complete Syntax

=AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])

## Cost Parameter

The cost parameter represents the initial purchase price or acquisition cost of the asset. This should be the total amount paid for the asset, excluding any salvage value. The cost must be a positive number and serves as the basis for all subsequent depreciation calculations.

## Date Parameters

The function requires two critical dates:

- **date_purchased**: The actual purchase or acquisition date of the asset. This date determines when the asset enters service and affects first-year proration.
- **first_period**: The end date of the first accounting period. In French accounting, this is typically December 31st of the year of purchase, but it can vary based on your fiscal year-end.

The difference between these dates determines the prorated depreciation for the first period.

## Salvage Value

The salvage parameter represents the estimated residual value of the asset at the end of its useful life. This is the amount you expect to recover when disposing of the asset. French tax law may have specific rules about minimum salvage values for certain asset types.

## Period Number

The period parameter specifies which accounting period you're calculating depreciation for. Period numbering starts at 1 for the first year and increments for each subsequent period. This allows you to calculate depreciation for any year in the asset's life by changing this single parameter.

## Depreciation Rate

The rate parameter is the annual depreciation rate expressed as a decimal (e.g., 0.15 for 15% or 0.20 for 20%). This rate is typically determined by dividing 1 by the asset's useful life in years. AMORDEGRC then applies the appropriate French coefficient to this base rate.

## Basis Codes

The optional basis parameter determines the day count convention:

- 0 or omitted: US (NASD) 30/360 method
- 1: Actual/actual (most common for French accounting)
- 2: Actual/360
- 3: Actual/365
- 4: European 30/360

French accounting typically uses basis 1 (actual/actual) to accurately reflect the actual number of days in the first period.

Practical Examples

Common Errors and Solutions

#NUM! Error

AMORDEGRC returns #NUM! error

Cause:

Invalid date values, negative numbers, or date_purchased after first_period

Solution:

Verify all dates are valid Excel date values. Ensure date_purchased comes before first_period. Check that cost, salvage, rate, and period are all positive numbers. Confirm salvage is less than cost.

Prevention:

Use data validation and IF statements to check parameters: =IF(date_purchased>=first_period, "Invalid Dates", AMORDEGRC(...))

Example:

#VALUE! Error

AMORDEGRC returns #VALUE! error

Cause:

Parameters contain non-numeric values or text strings where dates are required

Solution:

Ensure all parameters except dates are numbers. Use the DATE function or cell references containing proper Excel dates for date_purchased and first_period. Remove any currency symbols or comma separators from numeric parameters.

Prevention:

Use DATE functions for all date inputs and verify with =ISNUMBER(date_purchased) that dates are stored as numbers

Example:

Incorrect Results

AMORDEGRC produces unexpected depreciation amounts

Cause:

Wrong basis code, period numbering issues, or rate entered as percentage instead of decimal

Solution:

Verify the basis code matches your accounting calendar (typically 1 for French accounting). Ensure period numbering starts at 1. Convert percentage rates to decimals (divide by 100). Remember that AMORDEGRC automatically applies French coefficients.

Prevention:

Create a reference table showing correct basis codes and maintain consistent fiscal year-end dates

Example:

Analysis ToolPak Not Available

Function not recognized in older Excel versions

Cause:

AMORDEGRC requires the Analysis ToolPak add-in in some Excel versions

Solution:

Go to File > Options > Add-ins. Select Analysis ToolPak and click Go. Check the box next to Analysis ToolPak and click OK.

Prevention:

Ensure Analysis ToolPak is enabled when distributing workbooks to users with older Excel versions

Example:

Best Practices and Pro Tips

Coefficient Automatic Application

AMORDEGRC automatically applies French tax law coefficients based on asset useful life: 1.0 for 3-4 years, 1.5 for 5-6 years, 2.0 for 6+ years, and 2.5 for special cases. Enter the straight-line rate (1 divided by useful life), and AMORDEGRC will apply the appropriate coefficient.

French Accounting System

AMORDEGRC is specifically designed for French tax and accounting regulations. If you're working with assets in other countries, use standard depreciation functions like DB (declining balance) or DDB (double declining balance) instead.

Limited Availability

AMORDEGRC may not be available in all Excel versions, locales, or spreadsheet applications. Google Sheets does not support this function. Test the workbook in the target environment before distributing.

Documentation Requirements

French tax authorities require detailed depreciation records for audit purposes. Always document the basis code used, maintain clear records of purchase dates, and keep complete depreciation schedules for all assets. Create a master asset register linking to your AMORDEGRC calculations.

Period Tracking

Create a reference table or named range to track accounting periods systematically. Include columns for period number, start date, end date, and fiscal year. Reference this table in your AMORDEGRC formulas to avoid calculation errors.

AMORDEGRC vs AMORLINC vs DB

Related Formulas and Use Cases

## AMORDEGRC - French Declining Balance

Method: Declining balance with automatic French coefficient application

Best For: French tax depreciation when regulations allow or encourage accelerated depreciation. Ideal for equipment, machinery, vehicles, and other assets that lose value quickly in early years.

Key Features: Automatically applies coefficients (1.0 to 2.5) based on useful life, handles prorated first period, switches to straight-line in later years when beneficial, ensures asset reaches salvage value.

## AMORLINC - French Linear Depreciation

Method: Straight-line depreciation with French prorating rules

Best For: French accounting when straight-line depreciation is required or preferred. Commonly used for buildings, certain intangible assets, and situations where tax law mandates linear depreciation.

Key Features: Prorates first and last periods based on actual days, no coefficient application, consistent depreciation expense each full year, simpler calculations than AMORDEGRC.

## DB - General Declining Balance

Method: Standard declining balance depreciation

Best For: Non-French accounting systems requiring declining balance depreciation. Use this for general-purpose accelerated depreciation in international contexts.

Key Features: Flexible rate specification, no automatic coefficients, works in all Excel versions and Google Sheets, not specific to any country's tax law.

## Choosing Between Functions

Use AMORDEGRC when operating under French GAAP or French tax law and the asset qualifies for declining balance treatment. Use AMORLINC for French entities when regulations require straight-line depreciation. Use DB for declining balance depreciation in non-French contexts. Never mix these functions for the same asset - choose one method and apply it consistently throughout the asset's life.

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