Calculating Prior Period Depreciation
Prior period depreciation is generally calculated only for Life to Date calculations. In Remaining Value calculations, prior period depreciation is calculated only if the accounting date occurs after transaction date.
Prior period depreciation is keyed by a derived beginning calculation date. For remaining value calculations in which the accounting date occurs after the transaction date, the beginning calculation date equals the transaction date. For life to date calculations, the beginning calculation date depends on a combination of the following items:
Transaction Date
Begin Depr Date
Note: One overriding factor that is used to derive the beginning calculation date is that it can never occur before the beginning depreciation date. If according to all calculations it should, it is automatically made to equal the beginning depreciation date.
PeopleSoft Asset Management calculates prior period depreciation using the derived beginning calculation date as well as the following items:
Period Depreciation Allocation
Accumulated Depreciation
The following examples illustrate how PeopleSoft Asset Management calculates prior period depreciation.
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 |
|
|
Calculation Type |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc 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 |
|
Prior Period Depreciation |
300 USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 7 through 9.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Periods |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
100 |
100 |
100 |
|
|
|
Allowed |
|
|
|
|
|
|
|
|
|
|
100 |
100 |
100 |
Taken |
|
|
|
|
|
|
|
100 |
100 |
100 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation
Taken Example Period 7: 100 USD - 0 = 100 USDBegin Calc Date = Begin Depr Date Periods from Begin Calc Date to Accounting Date = 7, 8, 9 = Periods within 7/1/2006 to 10/1/2006 Prior Period Depreciation = Sum of Difference Per Period for all periods within Begin Calc Date to Accounting Date $300 = $100 + $100 + $100The 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 |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc 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 |
|
Prior Period Depreciation |
(200) USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 7 through 9.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
100 |
100 |
100 |
100 |
100 |
100 |
Allowed |
|
|
|
|
|
|
500 |
|
|
|
100 |
100 |
100 |
Taken |
|
|
|
|
|
|
(500) |
100 |
100 |
100 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation TakenExample Period 7: 100 USD - 0 = 100 USDBegin Calc Date = Begin Depr DatePeriods from Begin Calc Date to Accounting Date =7, 8, 9 = Periods within 7/1/2006 to 10/1/2006Prior Period Depreciation = Sum of Difference Per Period for all periods within Begin Calc Date to Accounting Date - Accumulated Depreciation(200) USD = (500)USD + 100 USD + 100 USD + 100 USDThe following table shows data that is used in the calculation example that follows.
|
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 |
|
|
Calculation Type |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
Y |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc 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 |
|
Prior Period Depreciation |
420 USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 3 through 9.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
Allowed |
|
|
|
|
|
|
|
|
|
|
60 |
60 |
60 |
Taken |
|
|
|
60 |
60 |
60 |
60 |
60 |
60 |
60 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation TakenExample Period 7: 60 USD - 0 = 60 USDBegin Calc Date = Begin Depr DatePeriods from In Service Date to Accounting Date =7, 8, 9, 10= Periods within 3/1/2006 to 10/1/2006Prior Period Depreciation = Sum of Difference Per Period for all periods within In
Service Date to Accounting Date420 USD = 60 USD + 60 USD + 60 USD + 60 USD + 60 USD + 60 USD + 60 USDThe 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 |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
Y |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc 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 |
|
Prior Period Depreciation |
(80) USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 3 through 9.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
Allowed |
|
|
|
|
|
|
500 |
|
|
|
60 |
60 |
60 |
Taken |
|
|
|
60 |
60 |
60 |
(440) |
60 |
60 |
60 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation TakenExample Period 7: 60 USD - 0 = 60 USDBegin Calc Date = Begin Depr DatePeriods from In Service to Accounting Date =3, 4, 5, 6, 7, 8, 9 = Periods within 3/1/2006 to 10/1/2006Prior Period Depreciation = Sum of Difference Per Period for all periods within In
Service Date to Accounting Date(80) USD = 60 USD + 60 USD + 60 USD + (440) USD + 60 USD + 60 USD + 60 USDThe following table shows data that is used in the calculation example that follows it.
|
Attributes |
Data |
|---|---|
|
Transaction Date |
3/1/2006 |
|
Accounting Date |
10/1/2006 |
|
In-Service Date |
3/1/2006 |
|
Life |
60 periods |
|
Cost |
6,000 USD |
|
Accumulated Depreciation |
|
|
Calculation Type |
Remaining Value |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc 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 |
|
Prior Period Depreciation |
300 USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 7 through 9.
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
100 |
100 |
100 |
100 |
100 |
100 |
Allowed |
|
|
|
|
|
|
|
|
|
|
100 |
100 |
100 |
Taken |
|
|
|
|
|
|
|
100 |
100 |
100 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation TakenExample Period 7: 100 USD - 0 = 100 USDBegin Calc Date = Begin Depr DatePeriods from Begin Calc Date to Accounting Date =7, 8, 9 = Periods within 7/1/2006 to 10/1/2006Prior Period Depreciation = Sum of Difference Per Period for all periods within Begin Calc Date to Accounting Date300 USD = 100 USD + 100 USD + 100 USD