**User:** cost percentage of depreciation method

**Assistant:** To define the cost percentage for the depreciation method (specifically for doubtful debt allowance), you'll use the Infor M3 program ARS

065. Here's a breakdown of how to set this up:

1. Access ARS065: Start 'Doubtful Account. Define Depreciation Percentage' (ARS065/B).

2. Select Sorting Order: Choose sorting order 1=Age range. (Sorting orders 2=Customer group and 3=Customer are for sorting only, not the primary criteria for defining the percentage.)

3. Enter Combination: On panel B, enter the required Age range. Optionally, you can also specify Customer group or Customer number to create more specific rules. This allows you to have different write-off percentages for different customer groups or even individual customers within a given age range.

4. Enter Description and Name: On panel E, enter a description and a name for this combination. This will help you identify the rule later.

5. Enter Percentage: Enter the percentage for the allowance/write-off for this specific age range/customer combination. Press Enter to save. Example: Let's say you want to set a write-off percentage of 50% for invoices that are 90-120 days overdue. You would enter the appropriate age range (which you would have previously defined in ARS060) and 50 as the percentage. If you wanted this to apply only to a specific customer group, you would also enter that customer group code. Important Considerations: Define Age Ranges First: Before using ARS065, make sure you've defined the age ranges in 'Doubtful Account. Define Age Range' (ARS060). The percentages you define in ARS065 are tied to these age ranges. Overlapping Ranges: You can have overlapping age ranges in ARS065, especially when using customer groups or numbers as additional criteria. Be mindful of how these overlaps might interact and ensure they result in the desired write-off behavior. The system will prioritize the most specific rule. For example, a rule for a specific customer will override a rule for a customer group that the customer belongs to, which in turn will override a general rule for the age range alone.