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Depreciate asset per caldendar days per period

  • July 14, 2022
  • 2 replies
  • 270 views
N
Freshman I

Good day,

 

I am trying to depreciate a fixed asset per calendar days per period. For example, if an asset has an original acquisition cost of $365 (useful life 1 year, straight-line), the depreciation schedule should look as follows:

Jan: $31, Feb: $28, Mar: $31, …… , Dec: $31.

I have created depreciation methods using the full day averaging convention but this feature seems to prorate the depreciation when placed in service during a period, for example if an asset is acquired half way through the period - only 50% of the depreciation will be posted to that period.

 

Example of Depreciation Method setup:

 

Example of Calculating Depreciation for Fixed Asset:

May you assist?

Kind regards,

Nicolas

Best answer by Laura03

Hello, Straight Line depreciation methods by definition depreciate the same amount per month/per financial period…. not using number of days.  You’ll need to Choose a Calculation Method other than SL.

I’m in USA and have not used Australian or other international methods, but I read the help briefly and I see that the Australian methods included in Acumatica are using DAYS in their calculations instead of Months or Periods.  To find the Help in Acumatica, use the Question Mark icon in the right side of the screen header.

I see more methods that seem to caclulate by day.  You can try them and figure out which one meets your needs. Good luck!

 

N
Laura03

2 replies

Laura03
Captain II
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  • Laura03
  • Captain II
  • Answer
  • July 14, 2022

Hello, Straight Line depreciation methods by definition depreciate the same amount per month/per financial period…. not using number of days.  You’ll need to Choose a Calculation Method other than SL.

I’m in USA and have not used Australian or other international methods, but I read the help briefly and I see that the Australian methods included in Acumatica are using DAYS in their calculations instead of Months or Periods.  To find the Help in Acumatica, use the Question Mark icon in the right side of the screen header.

I see more methods that seem to caclulate by day.  You can try them and figure out which one meets your needs. Good luck!

 

~ Laura Barber, WM Synergy
Chris Hackett
N
Freshman I
  • nadphillips
  • Author
  • Freshman I
  • July 26, 2022

Hi Laura,

Thank you very much for your assistance.

I found the New Zealand Straight Line method does the job :)

The depreciation method I described in the original post is straight line, as the asset is depreciating a fixed $1 per day of usage.
 

SL depreciation = (Original Acquisition Cost - Salvage Amount) / (Number of Useful Years * Frequency)

where frequency = 365 for daily, 12 for monthly etc.

Chris Hackett
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