Issue/Symptom/Question

When comparing PENTA to the Auditor or Tax Accountant Fixed Asset report, the Depreciation PENTA has calculated is different

Applies To

PENTA for Windows

Workbench - Asset List and Accumulated Depreciation Reports

Depreciation

Resolution/Fix/Answer

There are various option combinations that can cause differences in how depreciation is calculated in PENTA:

1. Option 190 - calculate per day or per period
2. Option 195 - require "In Service Date" - basically this determines if Acquisition Date is the Date to use to start depreciation or the In Service Date is used to start depreciation
3. Option 219 - Depreciation Start Date is either the Acquisition/In Service Date or the 1st Day of the Acquisition/In Service Date Period
4. Option 248 - Calculate based on Original Cost or Book Value

For example, if Option 190 calculates deprecation based on the Day, the annual depreciation amount is divided by 365 and multiplied by the days passed/used in the year.  The previous report might calculate based on the period, so the annual depreciation amount is divided by 12 and multiplied by the periods completed/used in the year.

Option 190 and 219 can cause differences as well.  An Asset with In service date of 3/30/xx might have a full month of deprecation for March calculated or 1 day, while the previous report could be delaying depreciation start date until April.

Being aware of these options will help reconcile differences as to why PENTA is calculating the depreciation it is.  Understanding the options and setting them to match the system depreciation being compared with will be required to get them in sync.