You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

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.

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!