Hello Connie,

That really goes back to the Adjustment question you asked which, I just realized, I talked about under-depreciated assets but never explained what those really are.

The calculation of all Straight Line methods (SL, SH, SF, AD, MF100 etc.) in the program is: Value/Life

What happens when importing data from another system is that the numbers from that old system is Imported in to SFA as the Beginning information. Beginning Information is a Manual Override of the depreciation calculated by the SFA. In other words, A Beginning Date in an asset is telling the program that from the Placed in Service date to the Beginning date - do not calculate depreciation but this is the amount of depreciation as of that date.

An Assets is under-depreciated when the Beginning Accum amount is less than what the program would have calculated from the Placed in Service date to the Beginning date.

With the Straight Line calculation being Value/Life, the program never looks at the Beginning Accum as a part of the calculation which is why we usually recommend the RV Method, since that calculation is the NBV as of the Beginning Date over the Remaining life as of the Beginning Date.

Too Confusing?

~Delray

To me, everything is conditional in the program. You give me one circumstance, I will give an answer, change just one element of that circumstance, you could get a completely different sounding answer.

RV is only really needed if the asset is under-depreciated. Over-depreciated asset will fully depreciate, just a little before the normal EOL.

If you are looking for a general statement, the closest thing I can give would be: In the Internal book, use RV in any Straight Line asset which has Beginning information in it. Even that would be subject to the conditions in the asset. 

~Delray

Not confusing at all but I do have a follow up question. Should using the RV Depreciation be used only when importing data from other systems or is the RV method the best to follow for Straight Line Depreciation assets so we don't have a remaining NBV? I'm attempting to avoid having remaining NBV in assets going forward.