Asset Depreciation Calculation

Hello,

I have the following scenario where the Asset Depreciation is “Full month depreciation in month of purchase & no depreciation in month of sale”.

Scenario:
Asset Cost: Rs 15000
Asset Method: Straight Line Method
Asset life: 5 Years
Asset depreciation for the month: Rs 250
Asset Depreciation for the year: Rs 3000

However, on the system when I have applied the same scenario, the asset depreciation for the month is shown Rs 246.58.

I want to know how erpnext is calculating the depreciation.

Hello @Dounisha_Jekarahjee

Based on Available to use date, it is calculating for that specific no. of days for the 1st year. And as if might be pro-rata it calculates depreciation on daily basis, i.e for Jan month having 31 days it will be more than the Feb month. (But eventually in YoY basis the total is same)

Regards