Formula based depreciation method not calculating the correct depreciation in year of accquisition
Summary:
I am trying to create a formula based depreciation method for an Intangible asset. Its based on the % assigned to each year.
Content (please ensure you mask any confidential information):
My formula is Decode ( Ceiling ( <Remaining life 1> ) , 5 , .33333 , 4 , .266667 , 3 , .2 , 2 , .133333 , 1 , .06667 )
The life of the asset is 4 years 3 Months. Its starts on 1st October 2025 to 31st December 2029. So its for 3 months in 2025. The expected amount for Oct-25, Nov-25 and Dec-25 is 12,447.98. A total of 37343.94 in 2025 which equates to the 33% of the total - hence the .33333. However when I run depreciation, I am not getting that- I am getting 2,333.97. I thought maybe it was allocating the 37343.94 over the 12 months of 2025 but no - 2333.97 x 12 = 28007.64 so I dont know what the system is doing.