Skip to Content
author's profile photo Former Member
Former Member

oayr smoothing

Hi,

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

Can provide a simple example with and without smoothing difference?

thanks

Add a comment
10|10000 characters needed characters exceeded

Related questions

1 Answer

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

    Smoothing:-

    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

    Rgds

    Murali. N

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.