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Depreciation is not calculated for expired period

Mar 10, 2017 at 03:51 AM

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Former Member

Hi,

I have an issue on asset depreciation as follows.

Asset value is 1,358,500

Asset Acquisition date 30 Jun 2014

Depreciation start date 01 Jul 2014

Useful life time 5 years

Deprecation method straight line method

Mistakenly, we have mentioned the depreciation start date as 01.02.2007. And still this asset was not depreciated. I want to post the depreciation for march 17 month for last 33 months including the this month also (March).Currently, i have changed the depreciation start date as 01 Jul 2014. But when i check the plan depreciation, it is calculated only for 30 months Jan 2017 to Jun 2019 (For whole asset amount). Asset Fiscal year is January to December.

Appreciate your valuable thought on this issue.

Thanks,

Regards,

Prabath

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2 Answers

Bernhard Kirchner
Mar 13, 2017 at 12:06 PM
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Dear Prabath,

1) What is oyur closed fiscal year? You can not calculate depreciation for closed fiscal years.

2) The depreciation start date is not always relevant

General rule:Normal acquisition: the depreciation start date is relevant
Transfer: the asset value date and the period control is relevant for the receiving asset

best regards

Bernhard

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Former Member Mar 16, 2017 at 11:02 AM
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Dear Bernhard,

Thanks for your response.

Asset FY is closed for 2016 (31.12.2016). Open for 2017. We need to post the depreciation from 01 July 2014 till 31 March 2017 into this month (Accumulated depreciation) . we have run the unapplaned depreciation also. But it is capturing the depreciation from Jan 2017 onward. System takes the remaining useful life time as 2 and 6 months. And calculate the depreciation for entire asset value (Rs. 1,358,500).

Hope this is clear. Appreciate your your response on this.

Thanks,

Regards,

Prabath

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