Hi,
Need some help to calculate the depreciation for different asset categories.
I have around 15 asset categories, under each category there are at least 10 assets. For example, under asset category "Building", there are 10 buildings which have been purchased in different years. New buildings can be added in future. For each building, I have an account (GL code) where the asset value is stored. Also, I have a depreciation account (specific GL code) for asset category "Building". Also, depreciation rate is fixed for each asset category.
I need to do planning for next 5 years (for example, during FY15, planning will be done from FY15 to FY19) and if the asset is purchased during the plan year, then depreciation will be calculated as (asset value * dep.rate / 2). If the asset is purchased in prior years, then depreciation will be (asset value * dep. rate). But depreciation will be calculated till the total accumulated depreciation reaches 90% of the asset value. Post that, the depreciation amount will be 0.
Since, I have multiple assets under each asset category and for each asset I need to check the 90% validation, then the corresponding depreciation will be added to a particular single depreciation account code. How to design the calcualtion....any suggestion please.
For example, depreciation code = 500000 and building account codes 100001, 100002, 100003 etc and it is just not like
500000=100001 * dep. rate + 100002 * dep. rate +....
Rather, the algorithm will look like,
If (100001->accumulated dep<=90% of 100001->asset value)
then dep. amount =100001->asset value * dep. rate
Again, If (100002->accumulated dep<=90% of 100002->asset value)
then dep. amount =100002->asset value * dep. rate
But 500000 will be sum of all dep. amounts.
Thanks.