Hello TCJA,

Calculation question cannot be answer without the proper context. For me, that is always Complete asset detailed information. You show me an assets and I can bore you to death with the answer - I will try to answer your question with the proviso that I do not know what you mean by the Current Period (Month, Quarter or Year) nor do I know when you say Non-Bonus if you mean MF200 or SL.

1. The YTD and Accum Calculations is always based off the 5 critical values of depreciation, Property Type, Placed-in Service date, Acquisition Value, Depreciation Method and Estimated Life, but can be modified by any Beginning information on the asset
2. There is no true up in the program the way you mean it (well, the story I get most often anyway). You change something in the asset and then next run of depreciation - you get a new calculation based on the new information. There is not difference calculations - It was one thing, but now it is another type of thing. There are Adjustments with will catch up under-depreciated assets and there are the RV, RM and RH methods but without know more about the asset in question and what you are really looking for, that is all I can say.
3. The Life is always calculated from the Placed-in Service date but after that - it all depends on the Depreciation Method selected and whether there is a manual Override of depreciation (Beginning Information) in the asset. For example: SL will always be Value over Life but if you are in the second year of a MARCS asset MF200 the calculation is ((NBV as of the end of the first year/Life)*2)(the declining balance percentage)

Yes, I can all your questions in relation to any given asset, but I do need all the information in the asset to do so.

~Delray

Hi Delray,

Thank you for your reply. In this example, current period = current year and non-bonus is MF200.  The correct life to date in YR 2 is 52% of value, therefore the true-up in YR 2 would be 52% minus 100%, or in this case a credit to current period depreciation of (480).  The true -up is the goal, whether the true-up results from a change in life, method or cost. How can this be accomplished using SAGE?  Thanks again.

No, it is not 52% percent. It does work out to be roughly 52% on a P, MF200, 5 year asset, assuming no short years and no beginning information - but that second year calculation starts with the Net Book Value from the end of the prior year. It is not a percentage calculation. In this context, the true up comes with the NBV of zero at the end of life of the asset

There are too many unknowns for me to be more specific. To answer your question I need complete Asset detail, Property Type, Placed-in Service date, Acquisition Value, Depreciation Method and Estimated Life - Is there a Beginning date on the asset? If so, what is the YTD and Accum?

In the case of a short year, there can be no percentage calculation. If the result is skewed by being manually overridden through the use of the Beginning information, then the program is calculating based off that Beginning Accum - That Manual amount - entered into it.

There are too many unknowns for me to be more specific