Hi Folks,
Hope you are doing Good.
I have created fixed asset with following details:
-Depreciation method: Straight line service life
-Life cycle = 3.00
-Acquisition date: 6/13/2015
-Expected scrap value = 5000.00
-Acquisition price = 30000.00 (Acquisition transaction has already posted)
Now i have entered the Placed in service and Depreciation run date as start of Acquisition's month i.e. 6/1/2015
Now i have created the deprecation transaction for three years through Depreciation proposal.
So the depreciation should be calculated for every month as:
(Acquisition price - Expected scrap value)/Total number of periods
So in my case (30000-5000)/36 = 694.00
But the first and last moth's depreciation amount is not as i expect, below is transactions detail:
| Date |
Transaction type |
Account |
Value model |
Description |
Debit |
Credit |
Offset account type |
| 6/30/2015 |
Depreciation |
3666 |
Comp_Equip |
|
|
685.00 |
Ledger |
| 7/31/2015 |
Depreciation |
3666 |
Comp_Equip |
|
|
694.00 |
Ledger |
| 5/31/2018 |
Depreciation |
3666 |
Comp_Equip |
|
|
719.00 |
Ledger |
Transactions that have date 6/30/2016 and 5/31/2018, not calculating depreciation according to standard formula, anyone have any idea about it ?
-Rahat Ali
