Depreciation Rules ( Acquisition , Disposal , Pro Rate and Mid Month) explanation with examples

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****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** Depreciation rules in accounting can be complex and vary depending on the specific method used. Here's a brief explanation of the rules you mentioned: 1. Acquisition: When an asset is acquired, the depreciation starts from the acquisition date. For example, if an asset was acquired on the 15th of February, the depreciation for that month would only account for the remaining days of the month, not the full month. 2. Disposal: When an asset is disposed of, the depreciation stops at the end of the asset's lifetime. This means that the final depreciation entry would be made in the last month of the asset's lifetime. 3. Pro Rate: This refers to the method of calculating depreciation based on the exact number of days in the month that the asset was in use. For example, if an asset was acquired on the 15th of a 30-day month, the depreciation for that month would be calculated for 15 days. 4. Mid Month: This rule is used when an asset is acquired in the middle of the month. The depreciation starts from the mid-month date and the depreciation schedule should reflect that the asset is depreciated from the mid of the month for each subsequent period. In terms of the depreciation journal, it is typically created at the end of the month as a standard practice, but it can be run prior to month end as well. When migrating fixed assets from recently acquired subsidiaries, it's important to properly map the depreciation methods. For example, if you have reducing balance and declining balance depreciation methods, you'll need to ensure these are correctly set up in NetSuite. Please note that the specifics can vary depending on your company's accounting policies and the specific configuration of your NetSuite instance.