Skip to Content
Former Member
Jan 16, 2007 at 08:46 AM

Asset Depreciation / imputed interest


Hi all,

I have an asset that is purchased in previous financial year (2005) and an addition was posted to it in October 2006 with reference date (asset value date) of 15th October 2006. As the value of the asset is increasing in the month of October I would expect to see the imputed interest amount being raised for October and all following months. My problem is that the interest amount is being lifted from the beginning of the year instead of October. Can anybody shed a light on why this might be the case. The period control for additions is set to 03 (Pro rata at mid-period).

The addition should return imputed interest of $250 per month so the expected total imputed interest for the addition in year 2006 should be max $750 but in fact the system is calculating it to be $3000.