Example - Straight-Line Depreciation
A fixed asset has an acquisition cost of LCY 100,000. The estimated life is eight years.
The Calculate Depreciation batch job is run biannually. The FA ledger entry looks like this:
| Date | FA Posting Type | Days | Amount | Book Value |
|---|---|---|---|---|
01/01/00 |
Acquisition Cost |
* |
100,000.00 |
100,000.00 |
06/30/00 |
Depreciation |
180 |
-6,250.00 |
93,750.00 |
12/31/00 |
Depreciation |
180 |
-6,250.00 |
87,500.00 |
06/30/01 |
Depreciation |
180 |
-6,250.00 |
81,250.00 |
12/31/01 |
Depreciation |
180 |
-6,250.00 |
75,000.00 |
06/30/07 |
Depreciation |
180 |
-6,250.00 |
6,250.00 |
12/31/07 |
Depreciation |
180 |
-6,250.00 |
0 |
*Depreciation start date