Understanding the Depreciation Calculation and Take-On
- March 9, 2023
When taking on an asset it is important not to get confused when using the ‘Depreciate From’ date. This date is the date from which the asset needs to be depreciated from and is NOT to be confused with a ‘Take-On’ date in Palladium. The only reason the Depreciate From Date would generally differ from the Purchase Date would be when you purchase machinery that only gets commissioned and is put into operation months later.
In terms of take-on – the ONLY value that needs to be updated is the Opening Depreciation as seen below.
From a depreciation calculation point of view, The Depreciation calculated at the Date of the Depreciation Run will first calculate the Total Depreciation from the Depreciate FROM Date (and not the date of Purchase) to the Depreciation RUN date, then less the Accumulated Depreciation to date, Less the Take-On Depreciation. What this does is offer you the flexibility to run your depreciation, monthly, annually or even daily if you so wish.
To read the full article on Fixed Assets, click here.