Setting Up Depreciation Timing Rules

Depreciation Timing Rules (FDU) allows you to apportion the depreciation calculated by Depreciation Calculation over the periods in the year, using a predetermined ratio.

For example, if you have 13 accounting periods in a financial year, the first 12 periods reflecting calendar months and the final thirteenth period holding year end adjustments, you only want to calculate depreciation for the 12 operational periods.

Depreciation timing rules allow you to specify the number of operational periods in your financial year and to specify how the annual depreciation charge should be split across these periods. You can also use this to account for periods of, for example, four or five weeks.

If a timing rule is not used, the annual depreciation is divided evenly over the number of periods in the year.