Dynamics 365 CommunityForums Microsoft Dynamics GP (Archived) How to calculate Perio...

How to calculate Periodic Depreciation Rate and Daily Depreciation Rate the last year of an asset's life

(0) Share

Report

Posted on by Community Member

Hi all,

I'm implementing Dynamics GP Fixed Assets module, so I'm doing some tests in a test environment and I'm having some diferences when I calculate Periodic Depreciation Rate and Daily Depreciation Rate for an asset that have a remaining life greater than a year vs an asset than have a remaining life less than a year. Which means to me that the mathematics is diferent when is the last year of an asset's life.

I would like to have the correct mathematics for both cases. And also, for the first year of an asset's life.

I'm using Straight Line Depreciation original life depreciation method and Next Period as Averaging Convention.

I'm using GP 10.

Many thanks in advance.

*This post is locked for comments

All responses (1)

Answers (0)

Romryan on at

Like (0)

Report

RE: How to calculate Periodic Depreciation Rate and Daily Depreciation Rate the last year of an asset's life

Aida,

Daily depreciation method multiplied by the days in a month should equal periodical depreciation of that month if the rate of depreciation is similar in both an asset that have a remaining life greater than a year and an asset than have a remaining life less than a year. the rate is based on the asset expected life so if these kind of assets have been set with different life spans, even if the depreciation method is the same, they will give different figures.

You better check original life year , Depreciation method,average convention and even switch over on Asset book if they are similar.

RomRyan