Depreciation period - Calendar or year ?

Hi ,

In the FA depreciation profile - Depreciation period field has two options - Calendar and year .

Could any one explain the difference and impact of the depreciation with an example ?

Calendar: the base of the depreciation calculation will be updated on january 1st

Year: the depreciation will be updated based on the setup for the financial year (the financial year can be more or less than 12 months, also the periods can differ in their length. DAX adjusts the depreciation amount per financial year

What is your suggestion that which option we need to select either calendar or Year ?

it depends on the needs of your customer and the law in the specific country your customer is domiciled/registered.

How the Financial year can be more or less than 12 years ?

I am bit confuse about the above statement ?

a financial period can be defined to your specific needs, so you can define a two months period (=6 periods within a calendar year) or a weekly financial period (=52 periods within a calendar year). even if i never defined these kind of periods. so i guess its meant to be a financial year which differs from the calendar year (e.g. july 1 to june 30 instead of january 1 to december 31).