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Hi All,
Can anyone suggest how to revise the Fixed Asset depreciation Straight Line % without modifying the existing %?
For example:
My asset has a straight line % of 5 till 1st June 2021 and it got revised to 4.7 and the user needs both the records.
Thanks in advance,
Srinivas Maddula.
Srinivas,
The Fixed Asset Depreciation Method - Straight Line is outlined below.
When you use the straight-line method, you must specify one of the following options in the fixed asset depreciation book:
If you enter the depreciation period (the number of depreciation years, the number of depreciation months, or the depreciation ending date), the following formula calculates the depreciation amount:
Depreciation Amount = ((Book value - Salvage Value) x Number of Depreciation Days) / Remaining Depreciation Days
Remaining depreciation days are calculated as the number of depreciation days minus the number of days between the depreciation starting date and the last fixed asset entry date.
Book value may be reduced by posted appreciation, write-down, custom 1 or custom 2 amounts, depending on whether the Include in Depr. Calculation field is deactivated and whether the Part of Book Value field is activated on the FA Posting Type Setup page. This calculation ensures that the fixed asset is fully depreciated at the depreciation ending date.
If you enter a fixed yearly percentage, application uses the following formula to calculate the depreciation amount:
Depreciation Amount = (Straight-Line % x Depreciable Basis x Number of Depr. Days) / (100 x 360)
If you enter a fixed yearly amount, application uses this formula to calculate the depreciation amount:
Depreciation Amount = (Fixed Depreciation Amount x Number of Depreciation Days) / 360
A fixed asset has an acquisition cost of LCY 100,000. The estimated life is eight years. The Calculate Depreciation batch job is run biannually.
For this example, the fixed asset ledger entry looks like this:
| Date | FA Posting Type | Days | Amount | Book Value |
|---|---|---|---|---|
| 01/01/20 | Acquisition Cost | (Depreciation starting date) | 100,000.00 | 100,000.00 |
| 06/30/20 | Depreciation | 180 | -6,250.00 | 93,750.00 |
| 12/31/20 | Depreciation | 180 | -6,250.00 | 87,500.00 |
| 06/30/21 | Depreciation | 180 | -6,250.00 | 81,250.00 |
| 12/31/21 | Depreciation | 180 | -6,250.00 | 75,000.00 |
| 06/30/27 | Depreciation | 180 | -6,250.00 | 6,250.00 |
| 12/31/27 | Depreciation | 180 | -6,250.00 | 0 |
Hope this helps.
Thanks,
Steve
Hello,
If I have well undestood the depreciation straight line percentage have to be changed and the fixed asset depreciation continues with the new percent value but is needed to keep track of the previous depreciation percentage.
The only way I see to achieve this is reclassifing the residual value of the fixed asset in a new Fixed Asset and set in the related Depreciation Book the updated percentage and the updated depreciation starting date.
I hope this helps.
Alessandra Pandini
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