mid month depreciation rule example for asset i

AI generated answer (using internal Slack threads):

Based on the conversations, it appears that the depreciation calculation in NetSuite Fixed Asset Management (FAM) depends on the depreciation method used. If an asset is purchased in the middle of the month, the depreciation can start from that mid-month date. However, the system typically uses the last day of the month for depreciation calculations, as this is a standard accounting practice. For example, if an asset is acquired on the 15th of a month with 30 days, the Exact Days depreciation method will depreciate it for 15 days, not the full month. This is because the Exact Days method depreciates the asset over the exact number of days in the month. Depreciation journals are usually created at the end of the month, but you can run them prior to month-end as well. The depreciation is released by the end date of the month, which is why it's often referred to as 'month-end'. In the case of asset disposal, the depreciation will occur in the last month of the asset's lifetime. If the asset is acquired, the depreciation will occur in the same month of the purchase. The exact date within the month may need to be tested. Please note that these are general guidelines and the actual depreciation calculation may depend on your specific setup and the Asset Class. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******