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

Fixed Assets - Depreciation Method

in Payables, Payments & Cash Management

Summary:

We have a customer requirement to create a depreciation method with a useful life of 8 years, with the following rates:

Year 1: 40%Year 2: 20%Year 3: 10%Year 4: 10%Year 5: 5%Year 6: 5%Year 7: 5%Year 8: 5%Since the rates vary by year, a table-based depreciation method was created.

Currently, the monthly depreciation calculation is working correctly. For example, if an asset is placed in service in April 2024, the depreciation from April to December 2024 is calculated using the Year 1 rate.

However, from January 2025, the system automatically starts applying the Year 2 rate, even though only 9 months of the first year have passed.

The expected behavior is that the Year 1 depreciation rate should apply for a full 12 months from the asset’s in-service date (April 2024 to March 2025), and only from April 2025 should the Year 2 rate be applied.

Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

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