2748419 - Calculation of Depreciation Amount for Each Period When It's Rounded

The acquisition cost for fixed asset ABC (ABC represents the ID of fixed asset) is YYY (YYY represents the amount), the useful life is ZZZ (ZZZ represents the number of periods) periods, the depreciation method is L010-Str.-line from acq.value to 0.

System calculates the depreciation as follows: Acquisition cost YYY divided by ZZZ periods resulting in the same depreciation amount with decimals for each period. System rounds decimals but the results of rounding of each period are different.

You don't understand how the system is calculated.

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1. Go to the Fixed Assets work center.
2. Go to the Fixed Assets view.
3. Search ABC.
4. Select Fixed Asset ABC and click Edit Values.
5. View subtab Depreciation Overview. You find depreciation amount of each period as below:

        Accounting Period 1, Depreciation XXX (XXX represents the depreciation amount)

        Accounting Period 2, Depreciation XXX

        Accounting Period 3, Depreciation XXX+1

        Accounting Period 4, Depreciation XXX

The depreciation methods have period control methods, etc. that all affect the calculation of the depreciation. Below is an example that drills down into the values system are using to get the depreciation values month on month.

Example:

Acquisition cost of fixed asset ABC: 6050 JPY

Useful life: 1 year = 12 periods

Depreciation method: L010-Str.-line from acq.value to 0. Depreciation method L010 has period control method 003. For period control method 003, transaction depreciation, the period control key is 01-Pro rata at period start date, which means the depreciation start or end date is always on the first day of the period in which the transaction takes place. You may refer to help documents Depreciation Methods and Period Control Methods and Keys for more details.

Depreciation starts from fiscal year 2018, accounting period 004.

Period Factor = period/total periods in year

Percentage is periods in segment (year) over total remaining useful life periods for that segment (2018 = 12).

A snippet from this, to explain accounting period 004/2018, 005/2018 and 006/2018.

Accounting Period 004/2018, Depreciation Amount 504 JPY:
Base Value = 6050 JPY
Period Factor = 1/12 (0.083333333)
Percentage = 12/12 (1.000000000)
Depreciation: 6050 JPY * 0.083333333 * 1.000000000 = 504.1666667 or 504 (rounded) JPY

Accounting Period 005/2018, Depreciation Amount 504 JPY:
Base Value = 6050 JPY
Period Factor = 2/12 (0.166666667)
Percentage = 12/12 (1.000000000)
Depreciation: 6050 JPY * 0.166666667 * 1.000000000 = 1008.333333 or 1008 (rounded) JPY - this value is 2 periods together. So to get 005/2018 on its own we subtract 1008- 504= 504 JPY.

Accounting Period 006/2018, Depreciation Amount 505 JPY:
Base Value = 6050 JPY
Period Factor = 3/12 (0.250000000)
Percentage = 12/12 (1.000000000)
Depreciation = 6050 JPY * 0.250000000 * 1.000000000 = 1512.5 or 1513 (rounded) JPY - this value is 3 periods together. So to get 006/2018 on its own we subtract 1513-1008 = 505 JPY.

And it continues along this line.

This is the expected system behavior. You can also refer to the 'Explain Values' PDF on the Values tab of the fixed asset (click Values -> Explain Values).

Fixed asset, Depreciation, Round , KBA , AP-ACC-FXA , Fixed Asset , How To