How is the remaining life of an asset calculated? I have an asset which is fully depreciated with no remaining life. When the Depreciated date is changed to the end of last year, because last year is when the asset fully depreciated, a recalculation of depreciation is done and the Remaining Year, Days becomes: 09: 348 (Original life is: 10: 000.
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Just following up on the case above, is this resolved ?
Your feedback is highly appreciated,
Okay, I will try to simplify my understanding for the way Fixed Asset module get these calculations done, I have applied these facts in several implementations and they were always precise.
You have primarily three factors included in this calculations:
Original Life Years and Days
The original life years and days is calculated based on the depreciation percentage, for instance, for an asset with a depreciation rate (15%):
Original Life years = 100/15 = 6.66667 (Truncate this to the nearest integer number) = 6 years
Original Life days = (100/15-6)*365 = 243.333 (Truncate this to the nearest integer number) = 243 days
Remaining Life Years and Days
From the original life years ad days above, the number of days for which the asset will be depreciated can be calculated.
For the example above, 6 and 243 = (6 years *365) + 243 = 2433
There are two facts that are considered as part of the calculation, which is the place in service and the last day of depreciation. The place in service is fixed, and the last day of depreciation is calculated based on the number of days to be depreciated.
Suppose that the place in service for the asset above is 30/11/2010 (Adding the number of days for this asset to be depreciated, which is 2433) will give you that the last day of depreciation is (29/07/2017)
Based on the calculation above, you have the following results:
Original Life years and days 6 years and 243 days
Place in Service date 30/11/2010
Depreciation Percentage = 15
Last day of Depreciation date 29/07/2017
Based on facts above, at any given date (depreciated to date), the system will automatically deduct the number of days between the depreciated to date to calculate the remaining years and days.
Your feedback is highly appreciated,
This date does not have the correct date. It shows as 12/14/2015 when it should be 12/31/2014. Besides, I need to get the asset to recalculate and this field will also cause that. The problem comes when the system recalculates the remaining life of the asset. So I'm wondering how the Remaining Life is calculated by GP.
I have a question,
Why are you changing the depreciated to date field ? It automatically changes after every single depreciation process to fill in the date accordingly. Since the asset is fully depreciated, it implies that this field (Depreciated to date) has the exact correct date according to the initial configuration of this asset.
Your feedback is highly appreciated,
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