Sage straight line depreciation not calculating correctly

I have set up an asset on sage with straight line depreciation of 2%

Cost price is £1,485.96, so depreciation should be £2.48 per month. However, when I enter NBV into sage of £1,218.49, it changes the depreciation to  £2.44

But 1,485.96 x 2% / 12 = £2.48

Why is sage calculating something different? It says £2.44 until I put in net book value, but straight line depreciation shouldn't be affected by the NBV

Please help!



  • Hello Clare Timbrell,

    I am trying to make sense of the information that you provided as the Sage Fixed Assets application doesn't use any % for SL depreciation method. 
    What is the product that you are using where this is the issue?
    Would you be able to also provide the details of the asset record?


  • Hi Clare,

    There is something amiss here.  I wonder if you may have posted your query to the wrong community board.

    First, the formula for calculating straight-line depreciation as you set forth in your post is not what we use in North America.  And Lovisa alluded to this already in her reply.  The formula we use is:

    (C - S) / L


    C = Cost, or Acquisition Value

    S = Salvage Value

    L = Life

    Second, you wrote that you had entered the NBV of £1,218.49 into the Sage program.  We do not manually enter the NBV (Net Book Value) into the SFA-Depreciation program we use in North America.  Rather, the software calculates the amount displayed in the NBV field.  It is the acquisition value less accumulated depreciation.

  • Hello Clare,

    By definition, anything actually using a percentage in the calculation is not going to be straight line. All Straight line calculations in the SFA program is always Value over Life. There is no other way it is handled in the program.

    Looking at this for the third time, since that 2% kept throwing me off and I was to busy to think yesterday, I believe you are looking at one of the Canadian declining balance methods, DM, DL or DY.

    DM02 or DL02 would give you calculation you gave above. As for the change in the calculation, it would be expected that if the value is changes in the asset, the calculation would also be changed.