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Rounding in FA depreciation

hanthant Member Posts: 115
edited 2008-09-03 in NAV/Navision Classic Client
Dear all,

Can anyone explain to me why the depreciation amount is not the same for everymonth? For example:

Fixed asset A has:

- Acquisition Cost: 7,957,666
- Year of Depreciation: 3
- Starting Depr.: 01/10/2007
Depreciaiton amount:
- Period 1: -221,046
- Period 2: -221,047
- Period 3: -221,046
- Period 4: -221,047
.....

If I want the depreciation amount to be the same for every month, the rounding amount will be calculated in the last period of its life, how can I configure?

Thanks for your advice.

hant

Comments

  • MalajloMalajlo Member Posts: 294
    Do you force No. of days?
  • hanthant Member Posts: 115
    No, I used 30 day month.
  • ayhan06ayhan06 Member Posts: 210
    hant wrote:
    No, I used 30 day month.

    nav calculates depr. from depr. starting date to posting date and abstracts depr which has already been calculated so far.

    e.g:
    depr. starting date: 01.01.08
    depr. ending date: 31.12.08
    aquisition cost at 01.01.08 is 7

    at 31.01.2008, depr. amount is calculated as 0,58
    at 29.02.2008, cumulative depr. amount is calculated as 1,17.
    so depr. amount for February is calculated 1,17 - 0,58 = 0,59 to avoid rounding residual.
  • hanthant Member Posts: 115
    ayhan06 wrote:
    hant wrote:
    No, I used 30 day month.

    nav calculates depr. from depr. starting date to posting date and abstracts depr which has already been calculated so far.

    e.g:
    depr. starting date: 01.01.08
    depr. ending date: 31.12.08
    aquisition cost at 01.01.08 is 7

    at 31.01.2008, depr. amount is calculated as 0,58
    at 29.02.2008, cumulative depr. amount is calculated as 1,17.
    so depr. amount for February is calculated 1,17 - 0,58 = 0,59 to avoid rounding residual.

    Thanks for your sharing.

    So how can I force the system calculate the depreciation same as previous month? In your example, the Depr. amount should be 0.58.

    Regards,
    hant
  • ssinglassingla Member Posts: 2,973
    System is posting correct depreciation overall and it is not any major difference in the monthly postings (rounding only). Why exactly is user insisting on equal amount ?
    CA Sandeep Singla
    http://ssdynamics.co.in
  • hanthant Member Posts: 115
    Hi,

    I am using Straight line method so we assume that the amount must be the same every month.

    Thanks,

    hant
  • ssinglassingla Member Posts: 2,973
    True but subject to rounding.... You have only two decimal places in currency though the calculation may run in more decimal places......

    You cannot/should not postpone the posting of rounding diffence in the last period of depr. but it should be posted in the current period only and that is what Nav is doing.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • hanthant Member Posts: 115
    Hi,

    In my country, the minimum currency amount is 1 so I have setup no decimal place and rounding precision is 1. It's better if the calculated amount be the same for everymonth and I don't have to explain that this is software behaviour.

    Thanks,

    hant
  • ayhan06ayhan06 Member Posts: 210
    hant wrote:
    Hi,

    In my country, the minimum currency amount is 1 so I have setup no decimal place and rounding precision is 1. It's better if the calculated amount be the same for everymonth and I don't have to explain that this is software behaviour.

    Thanks,

    hant
    sorry but, if you set up no decimal places and your rounding precision is 1, then it should round depr. amount.

    please show me that how much will montly depr. amount be if your purchasing cost is 500 LCY and "No. of Depreciation Years" is 10?

    anyway, may be you can use "Use Rounding in Periodic Depr." field in deprication book setup. but this won't solve your problem exactly.
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