Hi, I am getting an issue in fixed asset depreciation calculation. I have acquired a fixed asset by 1,00,000. I was calculating the depreciation through reducing balancing method by 10% .And period frequency is Fiscal period(monthly). Now the issue is depreciation amount should calculate 833.33 per month. But it is calculating 769. I am showing you the screen shot. Not able to trace out my mistake where I did. Pls tell me where I did mistake.
Is there any manual entry posted? The second line is showing depreciation as 410 while first line is blank. The fixed asset value model transaction analysis will be helpful. If the depreciation method is reducing balance, the depreciation amount should not be static.
Also, on the value model. click on Inquiries → Profile and validate the depreciation amount there, what system is calculating.
Here no any manual entries posted. Actually I aquired asset on 15-Sep-2014.Thats why first line is showing emptly. Second line calculated as 410, becoz from 15th to 30th september it has calculated depreciation as per our period frequency is fiscal period(monthly).And third line onwards full monthly depreciation. actually it should be calculated as 1,00,000*10% =10,000 per year, 10,000/12(months) =833.33 per month.It should calculate as like this but it is calculating 769.00
The depreciation method you are using is Straight line method! The method that you are using cannot be Reducing balance! the reducing balance method reduces the depreciation as time goes by!
Another issue i can think of is that u might have added a secondary depreciation in your value models and than assigned that value model to ur fixed asset!!!
I have also found something here i wasn’t aware of! when u keep a fixed value of say 10% … i am getting a fixed value of 840 for month for that year… the depreciation has changed to 808 the following year and it keeps going down from there on every year
I have a small question with regard to ur latest comments of that, you said that when you have given the 10% as Rate of deprecation gradually the amount every year has been reducing subsequently thats fine but can you please clarify me if it’s applied using Straight line meathod or Reducing Balance Method?