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[FI-AA] Depreciation Rate Calculation in Remaining Useful Life Method

Dear All,

I request your inputs in understanding (Mathematical Formula) how the System arrives at the Dep Rate in Remaining Useful Life Method. The Following are the Details

Original APC Value : 200000

Asset Acquisition on : 01.01.2017or

Asset Life : 2 Years

Dep to Date Indicator is Selected (so the No Of Periods is 365 in a Year)

First Year Dep Rate Shown By System: 0.50 (No Problem with this)


On 01.04.2018 Subsequent Acquisition is made APC Value is 10000.

When analysed system show a rate of 1.327273.(Screen shot as below)

Request your support in understanding how the system has arrived at the Dep Rate of 1.327273.

Thanks & Regards

Surya Varma

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1 Answer

  • Jul 06, 2017 at 07:15 AM


    How you did subsequent acquisition.

    By Adding Value to same asset ???

    If so, system calculate depreciation for subsequent acquisition also, from the fist capitalization date.


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