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Dec 28, 2018 at 04:00 PM

Issue with Depreciation rate for second year

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We are experiencing issues with the depreciation calculation after year 2. We updated our Fixed Assets policy as follows:

First year depreciation expense

  • Calculates 6-month total
  • Divides by 12 to obtain monthly expense amount
  • Begins posting depreciation in month of acquisition
  • Spreads expense over all months from point of acquisition
  • The 1st posting in the month of acquisition trues-up year-to-date expense

Middle years depreciation expense

  • Calculates 12-month total
  • Divides by 12 to obtain monthly expense amount
  • Posts monthly amount each month

Last years calculation

  • Calculates 6-month total
  • Divides by 12 to obtain monthly expense amount
  • Posts monthly amount each month (Jan-Dec)

The issue we are seeing that All assets of which the first acquisition date is in 2018 are having incorrect dep amount calculated for 2019.

Below is one example for US asset with dep key ZL07. Dep amount for 2019 is incorrect.