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Lauren Poole

Sage Fixed Assets Straight Line Full Month Calculation for First Month

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Hello,

I have an asset that is doing more than just one month's depreciation at straight line full month. It's doubling the amount it should be. Is there maybe a setting that should be corrected to calculate properly for our internal book or do we need to update the software? After catching this asset, I notice a few others added this current fiscal year doing the same thing, but not all of them. Below is what I believe the correct answer should be and where it's at. I'll also attach a screenshot. Thank you in advance for your help!

Acquisition value = $23,631.30 5yr estimated life and straight line full month method with placed in service date 10/01/2022

From 10/01/2022 to 10/29/2022 I think the depreciation should = $363.56      ($23,631.30/5 years = $4,726.26/year in depreciation, $4,726.26/52 weeks in a year =$90.89/week in depreciation, 4 weeks in this accounting period 4weeks * $90.89 = $363.56, system shows double $727.12 for this depreciation run.

Asset Screenshot.pdf

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    Hello Lauren Poole,

    Would you share the calendar setup that you have for the internal book? This will help in figuring out the calculation. Also what is the business start date set? That could have something to do with the calculation you are receiving.

  • +1 in reply to Lauren Poole
    verified answer

    Straight line full month will give depreciation for the periods that apply based on the service date. The service date is 10/1/2022 and that falls on the last day of the second period and then you depreciate for the 3rd period that naturally will depreciate for two periods due to the nature of the depreciation method that allows that. Are you looking to just have depreciation start in period three 10/2/2022 - 10/29/2022? If so you have two choices:

    1. You can change the service date to 10/2/2022 and start the depreciation over again where you would answer the popup depreciation related questions Yes and Placed in service date.

    2. You can also choose to use the depreciation method of Straight line midmonth (SL) which will not take depreciation on period two as the service date falls on the last day of that period.

    I hope that makes sense.

  • 0 in reply to Lovisa

    I feel so silly, that makes total sense! Thank you!!

  • 0 in reply to Lauren Poole

    No worries! We all have those moments.

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