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Question on dep calculation with change of useful life

Former Member
0 Kudos
92

Hi All,

Need clarification

On dep calculation with change of useful life 

Change of useful life in the month of Oct, system will adj the dep for the previous month in the same financial year.
Should it recalculate dep from month of Oct onwards without charging lump sum which is for period 1 to period 9 in Oct month?

Oct dep

11,075.40




per mth dep after change of UL1,499.29




extra dep

9,576.11













Jan to Sept additional dep1064.012




Original dep
435.28




New dep / mth
1499.292











Kindly check the attachment for more details

Thanks

Lucky

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Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

According to my understanding, in above case if the useful life is changed in the October month then system will automatically recalculate the values according to the period in which depreciation is actually last posted. Like if the Depreciation is posted till September, then system will cumulate the additional depreciation value for January to September if you following Calender Fiscal Year and the same will be posted in the month of October.

And if the depreciation is not posted for the year then the same will be adjusted proportionately in all the periods and if the last fiscal year is not closed, then the depreciation will be adjusted to that year also.

Regards,

Malhar.