How does the system calculate first period depreciation in case of WDV method.

 Dear All,

We have defined a WDV depreciation method with 

Method Type - FLAT; 

Calculation Basis - NBV; 

Depreciation Basis Rule - USE TRANSACTION PERIOD BASIS.

We have migrated asset register as of 31 Oct 2013, with following details (one of the sample record)- 

Original Cost - 54207.86

YTD Depreciation - 2540.43

Accumulated Dep - 32809.23

Net Book Value( System Calculated) - 21398.63

We ran the first period depreciation for the month of Nov 2013. The System is calculating depriciation on the NBV as of 31 Oct 2013. Howver, deprecation should be calculated on the basis of NBV as of 1 Apr 2013 which would be (Original Cost - Accumulated Depreciation + YTD depreciation). Alternatively, it should calculate the Nov depreciation as (YTD Depreciation as of 31 Oct 2013 i.e. 2540.43)/ Number of Days from 1 apr - 31 Oct i.e. 214 days  multiplied with 30 days.