Fixed Assets - EBS (MOSC)

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First depreciation, on asset added with past DPIS, calculated incorrectly by system

edited Aug 17, 2015 1:31PM in Fixed Assets - EBS (MOSC) 9 commentsAnswered

We are using reducing balance method (flat)

When an asset is added with past DPIS the system automatically calculates an adjustment for depreciation to date and reduces the WDV.

When first depreciation is run we expect the system to use the original cost as the base (since the financial hasn't changed)

Instead it is using the WDV (after adjustment) to calculate depreciation charge.

Example:   DPIS: 10 Feb 2015

                Date of addition: 1 May 2015 (current open period)

                Financial year end 30th June

                Cost: 120,000

                Dep rate: 20%

Expected behavior:  1. Depreciation for first year = 120,000 x 20% = 24,000

                              2. Monthly depreciation=          2,000

                              3. Adjustment by system on addition in May  =  2,000 x 3 (dep for Feb, Mar, Apr) = 6,000

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