wadedaw
Member
I am having trouble understading how OneWorld computes straight line depreciation.
I am looking at an asset whose original cost was 320.68 and the date aquired (in F1201) is 7/1/2003. The date depreciation started (in 1202) is 8/1/2003. The following is the setup for the AA ledger (in the depreciation information screen) for this asset:
Depreciation Method: 01 (Straight Line)
Life Months: 12
Depreciation Information (or term aportionment): <blank> (first day of month)
Computation Method (Direction): R (remaining months)
The formula codes set for the above combination are:
Basis Formula 500 (Remaining Basis): Basis = "Original Cost" + "Acum. Depr." - "Salvage Value (SV equals zero in our case)"
Depreciation Formula 100 (SL Remaining Days)Basis / "Asset life days remaing to") * "Asset days to depreciate"
We have booked depreciation three months now with amounts:
Aug 2003: 26.88
Sep 2003: 28.22
Oct 2003: 27.55
This is totally perplexing. The amounts are varying and we can't figure out why. Can anyone please decipher what is going on here. And can you please tell me what the elements of the dreciation formula 100 mean.
Thanks a million,
Wade
I am looking at an asset whose original cost was 320.68 and the date aquired (in F1201) is 7/1/2003. The date depreciation started (in 1202) is 8/1/2003. The following is the setup for the AA ledger (in the depreciation information screen) for this asset:
Depreciation Method: 01 (Straight Line)
Life Months: 12
Depreciation Information (or term aportionment): <blank> (first day of month)
Computation Method (Direction): R (remaining months)
The formula codes set for the above combination are:
Basis Formula 500 (Remaining Basis): Basis = "Original Cost" + "Acum. Depr." - "Salvage Value (SV equals zero in our case)"
Depreciation Formula 100 (SL Remaining Days)Basis / "Asset life days remaing to") * "Asset days to depreciate"
We have booked depreciation three months now with amounts:
Aug 2003: 26.88
Sep 2003: 28.22
Oct 2003: 27.55
This is totally perplexing. The amounts are varying and we can't figure out why. Can anyone please decipher what is going on here. And can you please tell me what the elements of the dreciation formula 100 mean.
Thanks a million,
Wade