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oayr smoothing


May I know what is the effect of tick smoothing? Why need smoothing?

Can provide a simple example with and without smoothing difference?


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  • Posted on Apr 24, 2012 at 09:43 AM


    e.g. You have purchased as asset on 01.02.2012 but according to period control method in the depreciation key, the depreciation start date is 01.01.2012. Since the acquisition date in in FEB, so you can't run depreciation for JAN.

    Now in smoothing method system distributes jan month depreciation to remaining months equally.

    e.g. 12000USD is the annual depreciation, so 1000 USD for each period.

    12000/11 = 1091 is the dep for each period.

    But in catch up method system posts the depreciation 2000 USD in Feb and remaining all periods 1000 USD only.

    I hope you understand


    Murali. N

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