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Hello,
I have several fixed asset cards where I need to record additions monthly. I need the additions to follow the half year convention/rule, while the original book value of the asset depreciates normally.
Does anyone know how I can make this work? The half year rule works during the first year of the fixed asset card, so any additions will not follow it. The only method I can think of is creating a new fixed asset card just for the addition and at year end combining it with the original asset, however this would entail creating 12 additions assets (one for each month) for each original asset so I'd like to stay away from this if possible.
Hello,
Here is the basic rule and process for Half-Year convention:
Select this check box to use six months of depreciation in the first fiscal year of the life of the asset, regardless of the asset’s depreciation starting date. Be aware that the half-year convention is available only with the Straight-line, Declining-balance 1, and DB1/SL depreciation methods.
When you apply the Half-Year Convention method of depreciation, a fixed asset has six months depreciation in the fiscal year regardless of the value in the Depreciation Starting Date field. If you want to apply this method, select the Use Half-Year Convention check box in the FA depreciation book. This depreciation method can be used with the following depreciation methods: • Straight-line • Declining-balance 1 • DB1/SL
This is how it works. No alterations.
Thanks,
Steve
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