Depreciation Issue

[Former Member]

Hi Experts,

It's a complicated issue about asset depreciation. I hope someone can show up and help me.

The assets use multilevel method (by period),period control is 11/11/01/01

The depreciation (acquisition value/12*rate) is correct from begining, after subsequent acquisition (happened in period 5 last year of useful life) , the depreciation((original acquisition+subsequent acquisition)/12*rate ) at period 6-8 is correct, but the yearly planned depreciation (original acquisition-accumulated previous year depreciation) turned to accumulated depreciation from period 6-10 at period 6, then depreciation from period 9-10 (last two periods in last year of useful life) suddenly turned to positive. It seems to meet the sum depreciation of period 6-10.

This issue happens to all assets occuring subsequent acquistion.

For example,

The multilevel method in year is

Period1 2%

Period2 1%

Period3 5%

Period4 2%

Period5 2%

Period6 6%

Period7 2%

Period8 4%

Period9 3%

Period10 1%

Asset Original Acquisition value is 1200

Previous year's depreciation 1172

Period1 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28

Period2 Depreciation -(1200/12*1%)=-1 Planned depreciation this year 28

Period3 Depreciation -(1200/12*5%)=-5 Planned depreciation this year 28

Period4 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28

Period5 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28 Subsequent Acquistion 300

Period6 Depreciation -((1200+300)/12*6%)=-7.5 Planned depreciation this year 20

Period7 Depreciation -((1200+300)/12*2%)=-2.5 Planned depreciation this year 20

Period8 Depreciation -((1200+300)/12*4%)=-5 Planned depreciation this year 20

Period9 Depreciation -((1200+300)/12*3%)=-3.75(Should be) System Calculated 6 Planned depreciation this year 20

Period10 Depreciation -((1200+300)/12*1%)=-1.25(Should be) System Calculated 1 Planned depreciation this year 20

Thanks

[Former Member]

Hi Mark,

I checked my configuration and I confused about "period control".

We set "period control' as below:

Acquisitions : 11 - Next month

Additions : 11 - Next month

Retirements :  01 – Pro rata at period start date

Transfers : 01 – Pro rata at period start date

We transfer the subsequent acquisition amount from AUC to finished goods by using 'ABUMN' which transaction type is "346".

So which period control will be chosen in the system,11 or 01 ?

I suppose is "01" because of the transaction type, however, if system choose "01", it's hard to explain, the depreciation happen in next month after the subsequent acquisition and the depreciation of period 6-8 are correct.

It's hard to simulate the same situation in system. How can I find the calculation logic?

Thank you so much!