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Fixed asset: how GP allocates depreciation?

Hi there,

I have a question about how GP calculates the monthly depreciation. So I have an example:

I have an asset:
Place in service date: 06/29/2016
Cost Basis: 3069.72
Depreciation method: Declining Balance
Averaging convention: half-year
Amortization Pct: 30%
6th period start: 5/28/2016
6th period end: 7/1/2016
Year end: 12/31/2016

According to my calcul: 3069.72*50%*30% = 460.458$ yearly (which GP agrees)
But then, when I request GP to depreciate this asset for the 6th period (end of this period occurs 3 days after placed in service date), GP decides that for this period, it would put an amount of 6.49$. And for every subsequent periods, it would allocate ~75.66$ ((460.458-6.49)/6 periods left to the year). So I understand the yearly rate, I understand that GP will split the depreciation amount left between all the future period..

But how the hell it calculates that 6.49$? There must be a formula that would let me calculate for all other assets that I have.. But I cant find it. I tried with 3 days on 365, on 366, on 218 (may 28 to dec 31), 214 (june 1 to dec 31).. There is no logical pattern that I can find. Anyone knows the exact formula and datas required to be able to reproduce GP first month depreciation for assets?

Thanks for help. I wish I could pay a coffee to the one who will be able to tell me this! :P

Flo

I found how...

Not using days... or not completely.. it's a weird mix of "remaining periods" and "days in period".... why make it simple when you can make it hard.. °_° silly GP devs...

Easy and quick would have been to say... 3 days left in june period.. and there are 186 days left in total... 3/186 * 460.46 = 7.426... but why make it logical and easy when you can make it very hard and unfriendly for the users... ☺

So no, what you have to do is: 3 days on the 35 days in the 6th period.. it's a ratio of 3/35 = 8.6%. So the amount of time left is 6 full future periods and 8.6% of one period... or 6.086... 460.46$ to allocate on those 6.086 periods remaining in the year.. so for one period? 460.46/6.086 = 75.66... for 1 period.. so what about june? well it's only 8.6% of a full period... 75.66*8.6% = 6.5$.... differences come from when you decide or not to round numbers.. I have no idea how much and when GP decides to round up but it's pretty much the calcul you have to do.

This method is pretty dumb considering that GP is considering all futures periods as 100% (x 6 periods left)... but all those 6 periods don't necessarily have the same mount of days... so how these periods can be considered being 100% each? 100% of 35 days is absolutely not equal to 100% of 31 days... silly GP devs...

Again, why make is easy when you can make it uselessly hard? Thanks GP for another GreatPain! Oups I mean, GreatPlain my bad! :P

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