Hi
One of my clients required changing their depreciation calculation process.They are using SLM Depreciation method.
They want to change the depreciation calculation method. I have mentioned below the current calculation and the required calculation. I have understood that the business needs to increase the Net Book Value of Assets.
| Current calculation: | |
| Opening Net book value | 26,03,404.68 |
| Plus APC transactions | 53,238.80 |
| Plus Revaluation APC | 13,15,347.22 |
| Plus Revaluation ord.dep | 4,90,498.30 |
| subtotal | 44,62,489.00 |
| divided by Remaining life | 30 |
| = Ordinary depreciation | -148,749.63 |
| Closing Net book value | 43,13,739.37 |
Opening NBV + APR+ Reval = Subtotal + depreciation (calculated as Subtotal divided by remaining life) = Closing NBV
| Required calculation: | |
| Opening Net book value | 26,03,404.68 |
| divided by Remaining life | 30 |
| = Ordinary depreciation | -86,780.16 |
| Plus APC transactions | 53,238.80 |
| Plus Revaluation APC | 13,15,347.22 |
| Plus Revaluation ord.dep | 4,90,498.30 |
| Closing Net book value | 43,75,708.84 |
Opening NBV + depreciation (calculated as Opening NBV divided by remaining life + APR + Reval = Closing NBV
Note: no new depreciation area is required, no new General Ledger codes - we simply require that the calculation of Ordinary depreciation be changed.
Could you please suggest a solution to achieve this.
Thanks and Regards
Siva