Calculating Yearly Depreciation
PeopleSoft Asset Management calculates yearly depreciation using two asset attributes:
Begin Depr Date
Depreciation Method
Other information that is used in this calculation includes the following information:
Adj Trans Date
Remaining Life
Remaining Value
Calculations differ depending on which calculation type is used: Remaining Value or Life to Date. The following examples show how this calculation is performed for each method. The base information is the same in both cases.
The following table introduces the data used in the calculation example that follow it.
|
Attributes |
Data |
|---|---|
|
Transaction Date |
10/1/2006 |
|
Accounting Date |
10/1/2006 |
|
In-Service Date |
3/1/2006 |
|
Life |
60 periods |
|
Cost |
6,000 USD |
|
Accumulated Depreciation |
500 USD |
|
Calculation Type |
Remaining Value |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Remaining Value |
5,500 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
550 USD |
Yearly Depreciation for 2006
Here is yearly depreciation for 2006 using the Remaining Value calculation type:
The following table introduces the data that is used in the calculation example that follow it.
|
Attributes |
Data |
|---|---|
|
Transaction Date |
10/1/2006 |
|
Accounting Date |
10/1/2006 |
|
In-Service Date |
3/1/2006 |
|
Life |
60 periods |
|
Cost |
6,000 USD |
|
Accumulated Depreciation |
500 USD |
|
Calculation Type |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Remaining Value |
6,000 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
600.00 USD |
Yearly Depreciation for 2006
Here is yearly depreciation for 2006 using the Life to Date calculation type: