Microsoft Dynamics GP

09 Jun
2015

Microsoft Dynamics GP

The following formula is used in Microsoft Dynamics GP for depreciating fixed asset using straight line method. Formula: (Cost โ€“ Salvage Value โ€“ (LTD Depreciation Amount โ€“ YTD Depreciation Amount)) รท Remaining Life in Days. Where: Cost = Cost of Asset Salvage Value = Estimated realizable value of an asset at the end of its life LTD Depreciation = Life to date depreciation YTD Depreciation = Year to date depreciation With the above formula GP determines the daily depreciation rate which is then multiplied by the number of days in a year If the Average method is “None” Dynamics GP will calculate depreciation as follows: For example: Asset Cost: $ 200,000 Asset Life: 10 years Depreciation: Daily Depreciation = 200,000/(360*10) = $ 55.55 Monthly Deprecation = 200,000/((360*10))*30 = $ 1,666.67

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