fax_Depreciation_Calculation_Example_8
Asset acquired at beginning of accounting period in middle of fiscal year using Date of Purchase basis. Date of Purchase method based on Days.
System-Wide Configuration: Spread "Catch-Up' among Remaining Periods in Purchase Year
| "Date of Purchase" Config: | (see below) Actual # Days in each Purchase Year Period |
| FY: | Calendar Year (January to December) |
| New Asset: | Acquired July 1, 2000 |
| Cost: | $ 12,000 |
| Depr Method: | S/L 5 (20% each year),.Date of Purchase Basis |
| Annual Depr: | (Years 1 to 5) 12,000 * 20% = 2,400 |
| Current FY/Pd: | FY: 2000 Pd: 10 |
| Depr Yr/Pds Remaining: | Depr Yr: 1 Days Remaining: 365 (at time of initialization) |
| Dates | No Days | FY | FY Pd |
|---|---|---|---|
| Jul 1 to Jul 31, 2000 | 31 | 00 | 7 |
| Aug 1 to Aug 31, 2000 | 31 | 00 | 8 |
| Sept 1 to Sept 30, 2000 | 30 | 00 | 9 |
| Oct 1 to Oct 31, 2000 | 31 | 00 | 10 |
| Nov 1 to Nov 30, 2000 | 30 | 00 | 11 |
| Dec 1 to Dec 31, 2000 | 31 | 00 | 12 |
| Jan 1 to Jan 31, 2001 | 31 | 01 | 1 |
| Feb 1 to Feb 28, 2001 | 28 | 01 | 2 |
| Mar 1 to Mar 31, 2001 | 31 | 01 | 3 |
| Apr 1 to Apr 30, 2001 | 30 | 01 | 4 |
| May 1 to May 31, 2001 | 31 | 01 | 5 |
| Jun 1 to Jun 30, 2001 | 30 | 01 | 6 |
| 365 |
End Of Purchase Year 1- Begin Purchase Year 2
| Dates | No Days | FY | FY Pd |
|---|---|---|---|
| Jul 1 to Jul 31, 2000 | 31 | 01 | 7 |
| Aug 1 to Aug 31, 2001 | 31 | 01 | 8 |
and so on.
Basic Formula
| (Annual Depr - PYTD Depr) * # Days in Curr Pd
# Days Remaining in PY (Including Current Pd) |
= Current Pd Depreciation | ||
|---|---|---|---|
| FY00 Pd 7: (2,400.00 - 0.00) = | 1795.06 * 31
273 |
= | 203.84 |
| FY00 Pd 8: (2,400.00 - 203.84 = | 2196.16 * 31
334 |
= | 203.84 |
| FY00 Pd 9: (2,400.00 - 407.68) = | 1992.32 * 30
303 |
= | 197.26 |
| FY00 Pd 10: (2,400 - 604.94) = | 1795.06 * 31
273 |
= | 203.83 |
| FY00 Pd 11: (2,400.00 - 808.77) = | 1591.23 * 30
242 |
= | 197.26 |
| FY00 Pd 12: (2,400.00 - 1006.03) = | 1393.97 * 31
212 |
= | 203.84 |
| FY00 Pd 1: (2,400.00 - 1209.87) = | 1190.13 *31
181 |
= | 203.84 |
| FY01 Pd 2: (2,400.00 - 1413.71) = | 986.29 * 28
150 |
= | 184.11 |
| FY01 Pd 3: (2,400.00 - 1597.82 = | 802.18 * 31
122 |
= | 203.83 |
| FY01 Pd 4: (2,400.00 - 1801.65) = | 598.35 * 30
91 |
= | 197.26 |
| FY01 Pd 5: (2,400.00 - 1998.91) = | 401.09 * 31
61 |
= | 203.83 |
| FY01 Pd 6: (2,400.00 - 2202.74) = | 197.26 * 30
30 |
= | 197.26 |
End Of Purchase Year 1 - Begin Purchase Year 2
| (Annual Depr - PYTD Depr) * # Days in Curr Pd
# Days Remaining in PY (Including Current Pd) |
= Current Pd Depreciation | ||
|---|---|---|---|
| FY01 Pd 7: (2,400.00 - 0.00) = | 2400.00 * 31
365 |
= | 203.84 |
| FY01 Pd 8: (2,400.00 - 203.84) = | 2196.16 * 31
334 |
= | 203.84 |
...and so on.
In this example, the system-wide default configuration on the Configure Fixed Assets Settings screen has been used to "Catch-Up" any missed depreciation among the remaining periods of the purchase year. No periods are missed for this example, so there is no "Catch-Up" amount computed for any period.
The Date of Purchase configuration for this example has been changed from the default to use the actual number of days in each purchase year period. When this configuration option is selected, the Depr Start Date field on the G/L Book Info tab and Other Books Info subtask of the Manage Asset Master Information screen determines how many days will be used in the computation for the first period in the first purchase year. Because the Depr Start Date for this example is the first day of the period, the full number of days in the period was used to compute depreciation for the first purchase month.