Hi
I have a reducing balance depreciation profile, set at 50% using financial year and financial period frequency.
Our financial year ends 31 May, so an asset purchased Dec 1 for 100,000 would have depreciation as follows:
Dec-May per period 4,167 (100,000 x 50% = 50,000 / 12), 6 months, so total = 25,000
NBV 31 May = 75,000
Depreciation per period in the following year is 3,125 (75,000 x 50% = 37,500 / 12), annual total = 37,500
This is all fine, but ideally the business would like to depreciate the first 12 months at 50%, irrespective of when the asset was acquired.
Their reasoning is that 50% of the value is expended in the first 12 months, whereas in the example the NBV would be 56,250 after 12 months (75,000 less 6 x 3125) and this figure would vary for every asset depending which month it was acquired.
So, in the example above:
an asset purchased Dec 1 for 100,000 would have depreciation as follows:
Dec- Nov per period 4,167 (100,000 x 50% = 50,000 / 12), 12 months, so total = 50,000
NBV at end Nov = 50,000, compared to the above 56,250
I can't see how this would be possible in D365, but in the interests of discussing all options with the business does anyone know of a method of achieving this?
Thanks
