Asset Depreciation Error

ERPNext Asset Management
1

Hello, i am trying to calculate asset depreciation via Straight line method.
Here, The details i am entering in Asset and Asset Depreciation docs.

Gross Purchase Amount: 2833752.00
Purchase Date: 05-10-2021
Asset Quantity: 1
Available-for-use Date: 06-10-2021

Opening Accumulated Depreciation : 266502.00
Number of Depreciations Booked: 2

Depreciation Method: Straight Line
Total Number of Depreciations: 15
Frequency of Depreciation (Months): 12
Depreciation Posting Date: 31-03-2024
Expected Value After Useful Life: 141688.00

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Depreciation Schedule:

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Now The issue is that ā€œDepreciation Amountā€ should be ā€œā‚¹ ā‚¹ 1,79,470.96ā€ but here itā€™s ā€œā‚¹ 1,86,581.69ā€

where am i doind mistake in inserting data in my Asset Form.

1 Like
2

i am also facing same issue. Please somebody help.

3

Hello @Srushti_Gosai

From what I can understand, the simple logic to calculate depreciation amount in Straight line method is :

  • Depreciation Amount = Gross Purchase Amount: (2833752.00) / Total Number of Depreciations: 15

which is ā‚¹ 1,86,581.69

Moreover, I donā€™t understand your ā€œOpening Accumulated Depreciationā€, for 2 months it should be ā‚¹ 1,86,581.69 *2 = 3,73,163.38ā€¬ , right?

I would update that value and check again the calculation.

Regards

4

Hello @Darshan_Patel1

There is also salvage value hereā€¦so calculation should be like this:

  • Depreciation Value = (Gross Purchase Amountāˆ’Residual Value )/ Total Number of Depreciations

  • Depreciation Value = (2833752āˆ’141688 )/ 15 = 179470.933333333

and bout the Number of Depreciations Booked: 2
itā€™s actually 1.5 monthsā€¦but idk how to handle this case here in assetā€¦

Thatā€™s why iā€™ve asked this question hereā€¦

1 Like
5

I am facing same issue in ERPNext v15.29.2

We cannot create Depreciation Schedule for existing assets as the calculation is wrong.

ERPNext directly deducts the opening accumulated depreciation from the gross purchase amount, them subtracts the salvage value and divides with the number of remaining depreciations! This is wrong method of calculation.

Has anyone found any solution for this?

@Srushti_Gosai Did you find a solution to this problem?