Depreciation Calculation

murthy · 2007-06-22

Hi all,

What Depreciation method to select in order to make depreciation calculation using written down value method? for e.g.

An asset is purchased in 2005 for 10,000
Depreciation for the year 1,000

Carried over balance to 2006 9,000

Now when i calculate depreciation for 2007 the depreciation should be on 9,000.

Appreciate you help on this.

Thanks
Murthy

ara3n · 2007-06-22

when you load it into navision, you need to bring it as acquisition of 9000.
Then setup the remaining months. And setup the same depreciation calculation as you were using your previous accounting system.

murthy · 2007-07-23

Select the Declining Balance 1 method and you get your desired results.

Alex_Chow · 2007-07-23

Actually, if you bring it over with the acquisition cost of 9000, your depreciation will not calculate properly. This is because you're depreciating based on the acquisition cost of 9000 instead of the original 10000.

The best way is the put in the acquisition cost on 2005 with 10000, depreciate it to 2006, then go from there.

This way, the depreciation will be consistant for every year for the life of the fixed asset.

Depreciation Calculation

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