How Is the STL Depreciation Method Calculated for Amortized Assets?

Feb 8, 2023 10:42AM

Summary:

How is the Straight-Line Depreciation Method calculated in Fusion Fixed Assets?

Content (required):

The calculation for STL depreciation method is as follows:

STL Depreciation = Cost / Life in Months / Rate Adjustment Factor

COST = 1000

LIFE_IN_MONTHS = 24 = 2 Years

RATE_ADJUSTMENT_ FACTOR = 8 → 8 / 10 = 0.8

Depreciation per year = Cost / Life in Years / RAF = 1000 / 2 / 0.8 = 625

Depreciation per day = 625 / 365 = 1.712328767123288

Depreciation per 30 days = 1.712328767123288 * 30 = 51.36986301369864

Depreciation per 31 days = 1.712328767123288 * 31 = 53.08219178082192

Note:

1. Rounding differences will be accounted within the last period of the year to total the amount calculated for the Annual Depreciation Amount.

2. RAF is used to set the new depreciable basis (adjusted cost) on assets which had amortized transactions.

Version (include the version you are using, if applicable): 22D