Depreciation period

A depreciation period is not necessarily the same as a calendar period. Calendar periods determine the dates that depreciation is calculated on. A calendar period can consist of more than one depreciation period. A typical example is a 4-4-5 calendar where each calendar period consists of four or five depreciation periods.

Because period depreciation is based on the fraction of the total number of depreciation periods in the calendar period rather than a fraction of the total number of calendar periods, you can use this feature to post different amounts to each calendar period. For example, the depreciation for a calendar period that contains four depreciation periods in a calendar year that contains 52 depreciation periods is 4/52nd of the annual depreciation. For a calendar period that contains five depreciation periods, the depreciation is 5/52nd of the annual depreciation.