How Is the STL Depreciation Method Calculated for Amortized Assets?
How is the Straight-Line Depreciation Method calculated in Fusion Fixed Assets?
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
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