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		<title><![CDATA[FrontAccounting forum — Declining Balance - Not working properly for subsequent years]]></title>
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		<description><![CDATA[The most recent posts in Declining Balance - Not working properly for subsequent years.]]></description>
		<lastBuildDate>Thu, 11 Oct 2018 07:03:53 +0000</lastBuildDate>
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			<title><![CDATA[Declining Balance - Not working properly for subsequent years]]></title>
			<link>https://frontaccounting.com/punbb/viewtopic.php?pid=32913#p32913</link>
			<description><![CDATA[<p>I have been testing declining method of depreciation in FA 2.4.4 but it works perfectly only for first/current year. When we move to next year and depreciate the same asset again it depreciates based on cost of fixed asset (the cost of purchase of fixed asset) rather than its written down value in new year (cost - accumulated depreciation). </p><p>I exactly followed this example from wiki</p><p>Example:<br />IT Equipment - depreciated over 5 years - nil value at end<br />Create Class, for Basic Depreciation Rate enter 20% (100% / 5 years = 20% per year)<br />Create a location for your asset<br />Create a Category - with the correct tax type and UOM - Modify relevant GL accounts<br />Add your fixed asset item<br />Choose the fixed asset class you created earlier<br />Depreciation Method: Declining balance<br />Base rate 20% - Rate multiplier 1<br />Purchase Fixed Asset</p><p>As written in the example declining method will reduce fixed asset value to zero at end and this is what is happening. Declining method should never reduce fixed asset to zero no matter how many years have passed. In declining method FA is practically doing Straight Line method with no salvage value which is wrong (SL method calculates depreciate based on cost of FA every year).&nbsp; </p><p>Can someone please fix it?</p>]]></description>
			<author><![CDATA[null@example.com (Shenzo)]]></author>
			<pubDate>Thu, 11 Oct 2018 07:03:53 +0000</pubDate>
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