Depreciation not calculating for leap year

[Former Member]

Hi Experts,

I trying to calculate depreciation for leap year but it is not considering 1 extra day of leap year.

For example

asset value 1000

useful life     4 yrs (1461 days)

Asset acquisition date- 01.01.2014

I have selected dep to the day option in depreciation key.

So as per my understanding rate cal should be like below

Year	Days	Rate	Dep amt
2014	365	0.249829	249.8289
2015	365	0.249829	249.8289
2016	366	0.250513	250.5133
2017	365	0.249829	249.8289

but system is not considering 1 extra day of 2016 and depreciating 250 for each year.

Could you please help me to understand the systems behavior or any other setting is required to achieve my requirement?

Please let me know if I need to provide any other information.

Thanks,

Pradeep

[former_member198650]

Hi Pradeep,

It will consider 366 days for 2016. But we can view if you close the FY 2014. Because the system wont show planned values for 2015 (2015-16). Please find the below screen shot.

Regards,

Mukthar

[raymond_moynihan]

Hello Pradeep,

Leap year is always calculated as a normal year in case
remaining life is larger than a year so the rate is :

You can see this under note 152789 :
...
The percentage rate for a fiscal year for example for straight-line
keys is then also determined independent of the actual days of a
year. Thus for example 10 years useful life -> Depreciation: 10% per
year. This is independent of whether a year has 365/366 or 367
days.
...

Concerning the useful life (and remaining useful life) calculation
I want you to notice to note 152789, topic 1. Complete fiscal years
are always counted with 365 days, independent of the real number of
days. A leap year has then no influence on the number of days for
a complete fiscal year.

Only for activities during a fiscal year, such as acquisitions on the
leap year the real number of days is considered.

So for calculations during the fiscal year you have to consider
366 days for transactions posted in the leap year.

Hope this clarifies the situation,

regards

Ray Moynihan

[Former Member]

Hi Ray,

Thanks for your reply.

So as per the note it will not consider leap year for calculating yearly depreciation rate, but for periodic posting it will take 366 days into consideration.

please correct me if I am wrong.

Thanks,

Pradeep

[Former Member]

Hi Mukthar,

I have one small doubt, how system has calculated 20% of depreciation rate as you have shown in above screenshot.

Thanks,

Pradeep

[former_member198650]

Hi Pradeep,

I have maintained the dep.key with 20% rate.

Regards,

Mukthar