GPTip42day – Should I be using Daily or Periodic Depreciation Period in Fixed Assets Book Setup?

The answer depends on if you want depreciation calculated based on the number of days in each period or equally for each period of the year.
Financial>Setup>Fixed Assets>Book
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Depreciation Period
 
Select the depreciation period. A yearly depreciation rate is calculated for each asset at the beginning of each year.
 
Daily depreciation results in the yearly rate being allocated based on the number of days in a period. For companies using accounting periods of 4-week, 4-week, 5-week quarters, daily should be used. Periods that are longer will receive more depreciation.
 
Periodic depreciation results in the yearly rate being allocated equally for each period in the year.

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GPTip42day – Should I be using Daily or Periodic Depreciation Period in Fixed Assets Book Setup?

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