SYD Function Dictionary

Function Dictionary	Function Examples	Function Categories

SYD
				Purchase Value Of A New Car	£20,000
				Second Hand Value	£8,000
				Number Of Years Ownership	6
				Deprecation in year 1	£3,429	=SYD(F3,F4,F5,1)
				Deprecation in year 2	£2,857	=SYD(F3,F4,F5,2)
				Deprecation in year 3	£2,286	=SYD(F3,F4,F5,3)
				Deprecation in year 4	£1,714	=SYD(F3,F4,F5,4)
				Deprecation in year 5	£1,143	=SYD(F3,F4,F5,5)
				Deprecation in year 6	£571	=SYD(F3,F4,F5,6)
				Total Depreciation :	£12,000	=SUM(F7:F12)
	What Does It Do ?
	This function calculates the depreciation of an item throughout its life, using the sum of the
	years digits.
	The depreciation is greatest in the earlier part of the  items life.
	What is the Sum Of The Years Digits ?
	The sum of the years digits adds together the each of the years of the life.
	A life of 3 years has a sum of 1+2+3 equalling 6.
	Each of the years is then calculated as a percentage of the sum of the years.
	Year 3 is 50% of 6, year 2 is 33% of 6, year 1 is 17% 6.
	The total depreciation of the item is then allocated on the basis of these percentages.
	A depreciation of £9000 is allocated as 50% being £4500, 33% being £3000, 17% being £1500.
				£9,000
		1	17%	£1,500
		2	33%	£3,000
		3	50%	£4,500
	As the greater part of the depreciation is allocated to the earliest years the values are
	inverted, year 1 is $4500, year 2 is £3000 and year 1 is £1500.
	Example 1
			Purchase Price Of A Car :	£10,000
			Salvage Value :	£1,000
			Expected Life in Years :	3
							As % Of Total Depreciation
			Depreciation in Year 1 :	£4,500	===>		0.5
			Depreciation in Year 2 :	£3,000	===>		0.333333
			Depreciation in Year 3 :	£1,500	===>		0.166667
				=SYD(E39,E40,E41,3)
	1. Add together the digits of the Life to get the SumOfTheYearsDigits, 1+2+3=6.
	2. Subtract the Salvage from the Purchase Price to get Total Deprectation, £10000-£1000=£9000.
	3. Divide the Total Deprectation by the SumOfTheYearsDigits, £9000/6=£1500.
	4. Invert the year digits, 1,2,3 becomes 3,2,1.
	5. Multiply 3,2,1 by £1500 to get £4500, £3000, £1500, these values are the depreciation
	values for each of the three years in the life of the item.
	Example 2
	The same example using 4 years.
			Purchase Price Of A Car :	£10,000
			Salvage Value :	£1,000
			Expected Life in Years :	4
							As % Of Total Depriciation
			Depreciation in Year 1 :	£3,600			0.4
			Depreciation in Year 2 :	£2,700			0.3
			Depreciation in Year 3 :	£1,800			0.2
			Depreciation in Year 4 :	£900			0.1
			Total Depreciation :	£9,000			100%
	Example 3
	This example will adjust itself to accommodate any number of years between 1 and 10.
			Purchase Price Of A Car :	£10,000
			Salvage Value :	£1,000
			Expected Life in Years (1 to 10) :	7
							As % Of Total Depriciation
		Year	1	£2,250			25%
		Year	2	£1,929			21%
		Year	3	£1,607			18%
		Year	4	£1,286			14%
		Year	5	£964			11%
		Year	6	£643			7%
		Year	7	£321			4%
		Year
		Year
		Year
				£9,000			100%
	Syntax
	=SYD(OriginalCost,SalvageValue,Life,PeriodToCalculate)
	Formatting
	No special formatting is needed.