Calculating period depreciation
After annual depreciation has been calculated, the Asset Management application can calculate period depreciation. To get the period depreciation, the annual depreciation is divided by the total number of periods in the year, as defined on the current calendar.
Current period depreciation is calculated as a fraction of the annual depreciation. The fraction is calculated as the number of depreciation periods divided by the total number of periods for the year, as defined on the current calendar.
Examples
For a routine 12-period year in which each period is one month, period depreciation would be 1/12th of the annual depreciation. For example, if the annual depreciation for the year was $1,200, each period depreciation would be 1200*1/12= $100.
In a 4-4-5 calendar, period 1 contains 4 depreciation periods; period 2 contains 5 depreciation periods. The total number of depreciation periods is 52. Assuming an annual depreciation of $1200.00, period 1 depreciation would be 1200*4 / 52= $92.30. Period 2 depreciation would be 1200*5/52= $115.38.