Fixed Asset-using Declining Balance- 20%

kimimp

Using NAV 2009- Classic Client. v6.0
I have a client, where the starting Book Value of the Asset was
2739.04 and they are using the Declining Balance method with a rate of 20%, and the half year convention for calculating depreciation.

The asset was purchased on june 01, and their fiscal year end is April 30th.

The first depreciation(30 days) posted was for 24.90$, I cannot figure out how this was calculated , can someone please help.

Also, they have subsequently posted some credit memos to this Asses and reduced the Book Value, how does the depreciation calculation change??

ssingla

System calculates Depreciation from the last acquisition entry date. Depr days will start from the last Credit memo date.

kimimp

Thanks, for the reply, but I was looking for the mathematical equation that created the first depr. of $24.90, as I could not explain to the client what it was.

ssingla

On the FA ledger entry field "No. of Depreciation Days" will tell the number of days for which the depreciation has been calculated. Rest is only calculation.