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.
MYOB INTERNAL STAFF ONLY
Insert PR# 171595053584
SR# 171252859431