Depreciating the Active Days in the Start Period

The standard procedure in SunSystems for calculating straight line depreciation in the first period, is to generate a full period's depreciation. However, you have the option to charge a portion of the period's depreciation, which relates to the number of days in the first period for which the asset is active or live.

On the asset, you determine the number of days in the start period, and then nominate the number of days for which the asset is active in the period. In other words, you identify the ratio of active days to the total number of days in the period. For example, if you purchased an asset on 20 April, which is during a thirty day period, you might charge ten days of depreciation in the first period.

Between the first and last period in the life of the asset, depreciation is calculated as normal.

The balance of the depreciation remaining from the first period is posted in the final period. With the example given earlier, ten days of depreciation would be charged in period one, for an asset purchased on 20 April. The final 20 days would be charged in the final period.

If you enter a first period and a depreciation percentage, the last period in the life of the asset is calculated as usual and one extra period added. If you enter a first period and a final period, it is assumed that you have taken account of the two part periods.