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FA Module - Depreciation Calculations

  • 1.  FA Module - Depreciation Calculations

    Posted 17 days ago
    Does anyone know how GP calculates a daily depreciation amount if an asset is placed in service on the last day of a month and the book setup has the Depreciation Period set as Periodic?  The specific asset is using Straight-Line Orig Life as the Depreciation Method, with no Averaging Convention stated. I've been trying to replicate the depreciation amount GP is calculating for the month the asset is placed in service, but I can't figure out how the system is allocating the depreciation to the periods in the first year the asset was placed in service.

    Here's some screen shots of the specific asset in question.


    I can't figure out how the system is calculating the $106.23 depreciation amount for FA Period 2018-011. It should be one day's worth of depreciation since the asset was placed in service on 11/30/18.  It appears for 2018, the system is allocating $3,293.31 of total 2018 depreciation between Nov & Dec (1 day in Nov + 31 days in Dec = 32 * $102.9158 daily depreciation rate = $3,293.31), but I'm at a loss as to how the system is coming up with the $106.23 allocated to Nov.  I thought maybe the system was basing it on 30.4167 days per month since the Depreciation Period is Periodic (rather than Daily), as 365/12 = 30.4167 days per month. 1 day for 11/30/18 divided by 30.4167 = 0.032877 * $3,293.31 total 2018 depreciation = $108.27, not the $106.23 computed by GP.

    Any thoughts?


    ------------------------------
    Richard Brunson
    VP & Controller
    Eastern Generation
    Stamford CT
    ------------------------------


  • 2.  RE: FA Module - Depreciation Calculations

    TOP CONTRIBUTOR
    Posted 16 days ago
    The second period depreciation is also odd, perhaps someone edited the cost and/or life after placing the asset in service.

    ------------------------------
    Bruce Strom
    Programmer Analyst
    Associated Grocers of Florida / Supervalu
    Sunrise FL
    ------------------------------



  • 3.  RE: FA Module - Depreciation Calculations

    TOP CONTRIBUTOR
    Posted 16 days ago
    Hi Richard,

    Can you please send a screenshot of your FA calendar 2018 - 2021... looks like you might be using 4-4-5?
    It might give us an additional clue...


    ------------------------------
    Ryan Galang
    BTP Technologies LLC
    Chantilly VA
    ------------------------------



  • 4.  RE: FA Module - Depreciation Calculations

    Posted 14 days ago
    Here's a screen shot of the FA Calendar. It's straight calendar months. We don't use 4-4-5.


    ------------------------------
    Richard Brunson
    VP & Controller
    Eastern Generation
    Stamford CT
    ------------------------------



  • 5.  RE: FA Module - Depreciation Calculations

    GPUG ALL STAR
    Posted 14 days ago
    The calculation is 3187.08 (the 2018 periodic rate) / 30 (days in November).

    Mark

    ------------------------------
    Mark Polino , CPA
    Director of Client Services
    Fastpath
    Altamonte Springs FL
    ------------------------------



  • 6.  RE: FA Module - Depreciation Calculations

    Posted 14 days ago
    Mark - Thanks for clarifying the calculation.

    ------------------------------
    Richard Brunson
    VP & Controller
    Eastern Generation
    Stamford CT
    ------------------------------



  • 7.  RE: FA Module - Depreciation Calculations

    Posted 14 days ago
    Mark - do you know how the system calculated the $3,187.08 periodic rate for 2018?

    ------------------------------
    Richard Brunson
    VP & Controller
    Eastern Generation
    Stamford CT
    ------------------------------



  • 8.  RE: FA Module - Depreciation Calculations

    GPUG ALL STAR
    Posted 14 days ago
    I'm not sure Richard. 3130.36 seems like the correct monthly amount. I would drill into each of the areas to see if GP has something hiding behind the scenes. Maybe there was a different amount originally and it got corrected or a reset was run.

    Click the Arrow next to Begin Year Cost for more details
    Click the hyperlink on Cost Basis for details
    Click the hyperlink on LTD depreciation
    In Financial Detail Inquiry select December 2018 and click the Amount hyperlink

    It's going to take a little more digging.

    Mark

    ------------------------------
    Mark Polino , CPA
    Director of Client Services
    Fastpath
    Altamonte Springs FL
    ------------------------------



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