If an asset is purchased in the middle of the month, depreciation should start from that mid-month date. Consequently, the depreciation schedule should reflect that the asset is depreciated from the mid of the month for each subsequent period. Can someone explain why the system is only using the last day of the month for depreciation calculations instead?.

Laste days of the month is end of month and that’s how accounting work. Exact days deprecation method will depreciate them over the exact days in the month and if asset was acquired 15th of the month and that month has 30 days it will only depreciate it for 15 days not full month.

@sam1128, thanks for the information.

Reaming days or full calendar month depends on depreciation methods.

So, depreciation journal will be created only at the end of the month.

It should be created at month end as a standard practice but you can run it prior month end too.