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Depreciation on assets held for less than a full year calculate incorrectly

This support note applies to:

  • AO Assets Live (NZ)
  • AE Assets Live (NZ)
Article ID: 37398515

In Client Accounting - Assets version 5.4.31, depreciation on assets held for only a part of the year calculate based on the number of days held in the year, instead of months held.

For example, an asset with the following information:

  • Acquisition date: 31/01/2019 (60 days held / 3 months held).
  • Original cost: $39,122
  • Depreciation rate: 25% diminishing value (DV)

Calculates at:

Client Accounting (incorrect)Correct calculation
Original cost * depreciation rate * (days held / days in year)Original cost * depreciation rate * (months left in year** / total months in year)

39122 * 25% * 60/365

= 1,608*

39122 * 25% * 3/12

= 2,445*

*rounding applied
**months left in year includes the month in which the asset is acquired

We're aware of this issue and we're looking into a solution.


Insert PR# 171595053584

SR# 171252859431

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