isb
Member
Hi List,
I try to set up new depreciation method which will use the following formula:
"Year to Date NBV / Actual Remaining Asset Life period"
It is clear for me how to calculate "Year to Date NBV", but I am not able to find any acceptable solution (or formula element) to calculate "Actual Remaining Asset Life period". Below is an example:
Original Asset Cost - 120,000 USD
Asset Life - 12 months
1-st Month Depreciation - 10,000 USD
In second period additional cost is posted to FA - 50,000 USD. FA life remains the same - 12 month
2-d Month Depreciation should be calculated as follows:
(Original Cost + Additional Cost - Accumulated Depreciation) / Actual Remaining Asset Life period.
(120,000 + 50,000 - 10,000) / 11 = 14,545.46
Does anybody have similar requirement which is implemented? I will appreciate any idea.
I try to set up new depreciation method which will use the following formula:
"Year to Date NBV / Actual Remaining Asset Life period"
It is clear for me how to calculate "Year to Date NBV", but I am not able to find any acceptable solution (or formula element) to calculate "Actual Remaining Asset Life period". Below is an example:
Original Asset Cost - 120,000 USD
Asset Life - 12 months
1-st Month Depreciation - 10,000 USD
In second period additional cost is posted to FA - 50,000 USD. FA life remains the same - 12 month
2-d Month Depreciation should be calculated as follows:
(Original Cost + Additional Cost - Accumulated Depreciation) / Actual Remaining Asset Life period.
(120,000 + 50,000 - 10,000) / 11 = 14,545.46
Does anybody have similar requirement which is implemented? I will appreciate any idea.