Costpoint Help

Depreciation Calculation Example 6

Asset acquired in middle of purchase year (which falls in middle of fiscal year) using Date of Purchase basis. Date of Purchase method based on Periods.

System-Wide Configuration: Spread "Catch-Up" among Remaining Periods in Purchase Year

"Date of Purchase" Config: Current Pd Depreciation Based on # Pds in Purchase Year (12)
FY: Calendar Year (January to December)
New Asset: Acquired July 2000
Current FY/Pd: FY: 2000 Pd: 7
Depr Yr/Pds Remaining: Depr Yr:1 Pds Remaining: 12 (at time of initialization)
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

Basic Formula

Annual Depr - Purchase YTD Depr

____________________________

# Pds Remaining in Purchase Year

= Current Pd Depreciation

FY00 Pd 7: (Purchase Yr 1, Pd 1)

(2,400 - 0)

12

=

200.00

FY00 Pd8: (Purchase Yr 1, Pd 2)

(2,400 - 200)

11

=

200.00

FY00 Pd9: (Purchase Yr 1, Pd 3)

(2,400 - 400)

10

=

200.00

FY00 Pd10: (Purchase Yr 1, Pd 4)

(2,400 - 600)

9

=

200.00

FY00 Pd11: (Purchase Yr 1, Pd5)

(2,400 - 800)

8

=

200.00

FY00 Pd12: (Purchase Yr 1, Pd 6)

(2,400 - 1000)

7

=

200.00

Note: After sixth period in purchase year, purchase year crosses fiscal years.

Annual Depr - Purchase YTD Depr

____________________________

# Pds Remaining in Purchase Year

= Current Pd Depreciation

FY01 Pd 1: (Purchase Yr 1, Pd 7)

(2,400 - 1200)

6

=

200.00

FY01 Pd 2: (Purchase Yr 1, Pd 8)

(2,400 - 1400)

5

=

200.00

FY01 Pd3: (Purchase Yr 1, Pd 9)

(2,400 - 1600)

4

=

200.00

FY01 Pd4: (Purchase Yr 1, Pd 10)

(2,400 - 1800)

3

=

200.00

FY01 Pd5: (Purchase Yr 1, Pd 11)

(2,400 - 2000)

2

=

200.00

FY01 Pd6: (Purchase Yr 1, Pd 12)

(2,400 - 2200)

1

=

200.00

End of Purchase Year 1 - Begin Purchase Year 2

Annual Depr - Purchase YTD Depr

____________________________

# Pds Remaining in Purchase Year

= Current Pd Depreciation

FY01 Pd7: (Purchase Yr 2, Pd 1)

(2,400 - 0)

12

=

200.00


Parent Topic:

Calculate Depreciation