Normal Topic Straight Line Depreciation Method (Read 763 times)
proudpoppy
Full Member
Members
***
Offline


Do What ??

Posts: 420
Location: South Carolina
Joined: Apr 7th, 2004
Straight Line Depreciation Method
Nov 11th, 2010 at 5:10pm
Print Post Print Post  
     I'm trying to get this formula to work in my program, it does but I need to tell it to start the depreciation from a date field on my form, I need help my brain just can't get it.The date field on my form is called "DateAquired".

Thank you for all your Help !!!


Var RR as Int

If @ToNumber(el) <> 0  Then           // el = estimated life
{
     RR = (pp - sv) / el             // pp = Purchase price, sv = Savage value
     CV = RR                   // CV = Current Value
     
}
Else
{
     cv = 0
}


Straight Line Depreciation Method

The simplest and most commonly used, straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company called "useful life" in accounting jargon.

Annual Depreciation Expense =

purchase price of asset - approximate salvage value
-------------------------- (divided by) --------------------------
estimated useful life of asset
  
Back to top
 
IP Logged
 
Ben
Lantica Support
*****
Offline



Posts: 218
Joined: Apr 7th, 2005
Re: Straight Line Depreciation Method
Reply #1 - Nov 11th, 2010 at 7:14pm
Print Post Print Post  
proudpoppy,
Is there anything that needs to be calculated based on the Date Acquired element's value or are you planning to use it as a trigger for the rest of the programming?

Example of using the element as a trigger:

If Not(@IsBlank(Date Acquired)) Then
{
  Figure out depreciation
}
  
Back to top
IP Logged
 
proudpoppy
Full Member
Members
***
Offline


Do What ??

Posts: 420
Location: South Carolina
Joined: Apr 7th, 2004
Re: Straight Line Depreciation Method
Reply #2 - Nov 11th, 2010 at 7:41pm
Print Post Print Post  
Say we buy a computer in Jan 2008 and it depreciates in 5-yrs in the Date Acquired field I put Jan 8.2008 and I want the formula to use that date to base the depreciation on.

Jan 8, 2008 bought date, Jan 8,2013 fully depreciated. In the example above I don't think its using the date acquired date at all in the formula, so I presume its using today's date or the date the record was made to base the calculation on?

Computer system = 1200.00, salvage value 50.00, 5-yr life  (1200.00 - 50.00) /5, what I can't get is how does it know when to start the depreciation? It needs to start the depreciation on the acquired date. Hope this makes sense.  Embarrassed
  
Back to top
 
IP Logged
 
Ben
Lantica Support
*****
Offline



Posts: 218
Joined: Apr 7th, 2005
Re: Straight Line Depreciation Method
Reply #3 - Nov 11th, 2010 at 8:42pm
Print Post Print Post  
In your examples, it does not matter what day the item begins to depreciate as you are specifying the estimated life (el) in a separate element.

I have included programming below that will calculate your yearly depreciation, to date depreciation and the current value of the item. This programming could be called from a command button on the form or 'On Form Entry'.

Using your figures in the example above, the example programming below comes up with the following figures:

Purchase Date: 1/8/2008
Purchase Price: $1200.00
Effective Years: 5
Salvage Value: $50.00
======================
Yearly Depreciation: $230.00
Depreciation To Date: $653.63
Current Item Value: $546.37



Notes:
You will need to change the element names in the 'Load Variables' and 'Post Results' Sections.

The example below does not stop calculating after an item is fully depreciated, if you want it to stop calculating after a certain date, you will need to modify the If statement located in the 'Calculate Current Depreciation' section.


Code
Select All
// DATE CONTAINERS
var vAcqD as Date //Acquired Date
var vCurD as Date //Current Date
var vEffY as Int //Effective Years

// DATE MATH
var vDays as Int //Days Between Acquired Date (vAcqD) and Current Date (vCurD)

// DEPRECIATION CONTAINERS
var vDepY as Money //Yearly Depreciation
var vDepD as Money //Daily Depreciation
var vDepC as Money //Current Depreciation

// VALUE CONTAINERS
var vPurP as Money //Purchase Price
var vSalV as Money //Salvage Value
var vCurV as Money //Current Value

	//LOAD VARIABLES
	vAcqD = Date_Acquired
	vCurD = @Date
	vEffY = Effective_Years
	vPurP = Price
	vSalV = Salvage

	// If vEffY Contains A Value
	If vEffY <> 0 Then
	{  
		//Calculate Yearly Depreciation
		vDepY = (vPurP - vSalV) / vEffY

		//Calculate Daily Depreciation
		vDepD = vDepY / 365.25

		//Calculate Current Depreciation & Current Value
		If vCurD >= vAcqD Then
		{
			//Calculate Days Since Purchase
			vDays = @ToNumber(vCurD - vAcqD)

			//Calculate Depreciation To Date
			vDepC = vDays * vDepD

			//Calculate Current Value
			vCurV = vPurP - vDepC

			//Post Results To Elements
			Yearly_Depreciation = vDepY
			Depreciation_To_Date = vDepC
			Current_Value = vCurV
		}

	}  
 


  
Back to top
IP Logged