Calculating Period Allocation
PeopleSoft Asset Management calculates period allocation using three asset attributes:
In-Service Date
Begin Depr Date
Transaction Date
Other information that is used in this calculation includes the following, derived from previous calculations:
Calculation Type
Adjusted Transaction Date
Yearly Depreciation
Number of Periods in Year
Life to Date calculations differ depending on whether the Depreciate When in Service option is set to N or Y. The following examples illustrate how PeopleSoft Asset Management calculates period allocation using the Remaining Value and Life to Date calculations. All examples use the same base information.
When a remaining balance exists due to rounding in the year, PeopleSoft Asset Management allocates that amount to the last period of the fiscal year. For example, 2000 USD to be allocated over 12 periods, periods 1 through 11 will have 166.67 each and period 12 will have 166.63 USD (2000 USD - (166.67 x 11).
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.67 |
166.63 |
Amount |
The following table shows data that is used in the calculation.
|
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 |
|
Period Allocation (First year) |
91.66 USD |
Period Depreciation Allocation
Here is the period depreciation allocation:
The following table shows data that is used in the calculation example that follows 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 |
Y |
|
Begin Depr Date |
7/1/2006 |
|
Remaining Value |
5,500 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
550 USD |
|
Period Allocation (First year) |
55 USD |
Period Depreciation Allocation
Here is the period depreciation allocation:
Period Depreciation Allocation = Yearly Depreciation / Periods from In-Service DatePeriods from In-Service Date = Year End - In-Service Date550 USD Yearly Depreciation / 10 periods from In-Service Date = 55 USD per periodThe following table shows data that is used in the calculation example that follows it.
|
Attributes |
Data |
|---|---|
|
Transaction Date |
5/1/2006 |
|
Accounting Date |
5/1/2006 |
|
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 |
|
Period Allocation (First year) |
100 USD |
Period Depreciation Allocation
Here is the period depreciation allocation:
Period Depreciation Allocation = Yearly Depreciation / Number of Periods in Year600 USD Yearly Depreciation / 6 periods = 100 USD per periodThe following table shows data that is used in the calculation example that follows it.
|
Attributes |
Data |
|---|---|
|
Transaction Date |
3/1/2006 |
|
Accounting Date |
3/1/2006 |
|
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 |
Y |
|
Begin Depr Date |
7/1/2006 |
|
Remaining Value |
6,000 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
600.00 USD |
|
Period Allocation (First year) |
60 USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
Amount |
Remaining life is 60 periods; remaining value is 6,000 USD; yearly depreciation for 2006 is 600 USD.