Changing depreciation rate and amortization start date to take into account new extended life

Hi all,

I have a query on FA, currently we are using Depreciation method: Flat based on Cost using Rate %.

Scenario,

Asset entered in May-06 with DPIS 1-Dec-2000, at the cost of $100,000.00 and accumDep with the depreciation rate of 6.25%. So effectively the asset will have a life of 16 years (100% / 6.25%).

In Nov-10, we want to change the rate to 5% and start amortization from 01-Jul-2010. So the system is reversing the depreciation charges between Jul-10 to Oct-10 - this is fine and working ok.

Now, 5% will have a useful life of 20 years. Based on 6.25% asset now should have a balance of 3 yrs plus. By changing to 5%, the asset will finish after Year 16 and before Year 20.