The asset acquisition on 30 Mar for 60 mths straight line method with selection of No prorata.
Why the depreciation was start from Jan?
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The reason why the depreciation started from January instead of March in your Odoo16 asset acquisition is most likely due to the fact that the straight-line depreciation method assumes that the asset is being used evenly throughout the year, regardless of when it was acquired. This means that the total depreciation for the year is calculated by dividing the cost of the asset by the useful life of the asset in years.
Since your asset has a useful life of 60 months (5 years), the annual depreciation expense would be the total cost of the asset divided by 5 years. However, since the asset was acquired in March, only 9 out of the 12 months in the year remain, which means that only 9/12 or 75% of the annual depreciation should be recognized in the first year.
However, since you selected "No Prorata" in the acquisition, Odoo16 assumes that the full year depreciation should be recognized in the first year, which results in the depreciation starting from January instead of March. If you want to ensure that the depreciation is calculated correctly, you should select "Pro Rata Temporis" instead of "No Prorata" during the asset acquisition process. This will ensure that the depreciation is calculated based on the number of months the asset is in use in the first year.
Thanks Bhavin Patel.
I did the same steps in last year transaction and the depreciation was start from the acquisition period. Anyway, I only allow to have the following selection for the computation: 1. No Prorata 2. Constrant period 3. based on day period.
Can I reverse the asset and re-create? Please share the reverse steps. Thanks in advanced
Yes, you can reverse an asset in Odoo and then re-create it with the correct computation method. Here are the steps to reverse an asset:
Go to the Odoo Accounting module.
Click on the "Assets" menu and select the asset that you want to reverse.
Click on the "Actions" button and select "Reverse."
In the "Reverse Asset" form, select the date when you want to reverse the asset. You can also modify the reversal account if needed.
Click on the "Reverse" button to confirm the reversal.
After reversing the asset, you can then create a new asset with the correct computation method. Here are the steps to create a new asset:
Go to the Odoo Accounting module.
Click on the "Assets" menu and select "Create" to create a new asset.
Fill in the asset information, such as the name, value, and computation method.
Click on the "Save" button to create the new asset.
Some companies use the "full month" convention when calculating depreciation. Under this rule, any asset acquired during a month is assumed to have been in service for the entire month, regardless of the actual acquisition date. This means the March acquisition would trigger depreciation starting from January within the same fiscal year.
Certain tax regulations might affect the depreciation start date. Depending on the country and specific tax rules, there could be provisions for postponing or adjusting depreciation for assets acquired in the latter part of the year.
Sources: https://basketballrandom.com
Thank you so much for the steps sharing.
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