Straight Line Depreciation

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

It looks as if your GL date pattern is not a standard month. You may be using 4-4-5 accounting which may account for the variance.

wadedaw <[email protected]> wrote: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 assetepreciation Method: 01 (Straight Line)Life Months: 12Depreciation Information (or term aportionment): (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: 26.88Sep 2003: 28.22Oct 2003: 27.55This is totally perplexing. The amounts are vary!
ing a!
nd 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
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World, OW B733X and Xe

Thanks for your reponse, Mike.

We are using the 'R' date pattern (12 Periods, Jan 1 - Dec 31) and the date pattern screen (P0008 - screen W0008A) is setup with the last day of the month in each period bucket.

Nothing iregular at all.

I apologize I put this inquiry in the wrong section. Does anyone know how to move it to the Applications section? Admins?

Wade

When you are processing depreciation (R12855), did you enter the period ending date in processing option #2 - Period End - Through date? Or did you enter the period number (ie: Jan = period #1)?

If you enter the period end date, JDE uses the number of days in each month to compute depreciation. So your depreciation will vary with the number of days in each month.

If you enter the period number (1,2,3,etc...) JDE calculated 1/12th of the annual depreciation amount. So you depreciation will be the same amount each month.

Hope this helps...