Hello Barbara,

To jump to the end of my normal speech - No, the program will not calculate a partial month of depreciation (you can stop now if you like. I am told I ramble a bit).

The shortest period of time the program will calculate is 28 days. The only exception is if the asset being disposed was Property Type R, MF100 and a life longer than 15 years, then you would get 15 days worth of depreciation, because those are the rules of than type of asset which takes a half month on being placed in service or disposed. The disposal calculation is still for the whole month.

A Disposal is a calculation of depreciation. On disposal, there is always a calculation. A disposal on the 15th of any month using the SL method, that calculation would be zero, but there was a calculation. What you get on disposal, depend wholly on the rules applied to the Property Type, Depreciation Method and Estimated Life combination on that asset.

I am not an accountant (I am a technician who reads a lot) and I have been asked this question a lot over the years. I have often seen this question as a bit of a conundrum since I have never read of a reason for depreciation to end in the middle of a month. I have read about Interest being calculated to a specific day for various reason, but never anything about depreciation. If you have any documentation supporting a reason for this calculation, please, share, either here or directly to those who make the decision about what goes into the program on the Sage Fixed Assets Ideas page.

I would love see a documented reason for this.