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Non calendar month accounting periods-impact on depreciation calculation

edited Jun 2, 2025 2:30PM in Ask A Guru 6 comments

HI There


I have a scenario where the accounting periods used by a business are not equal to calendar month.

Instead, an accounting period varies and uses the 4-4-5 set up.

Is there a way to set up a diminishing value depreciation method for this?

At the moment, the depreciation formula used for most assets is is:

Prior year net book value*(depreciation rate/12).

This will calculate depreciation evenly however.

Thanks

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