Hi,

I have been trying to implement fixed asset for a US customer.

I am a little confused with the Averaging conventions. I have the basic explanation provided by Baan docs. But the exact calculation of service date and depreciation end date is not very clear.

Can someone help me with what are the specific calculations for these averaging methods?

In any case, I need the following implementation:
We use a 10 year (120month) - Straight-Line method for all assets. On the front side, we recognize 1 full month’s depreciation during the month the asset is placed in service (doesn’t matter if it’s the 1st day, the 15th day or the last day of the month). On the back side, we take 1 full month’s depreciation in the month the asset is sold, disposed or taken out of service. (Again, it doesn’t matter if it’s the 1st day, the 15th day or the last day).

What would be the best convention to use in this case. I think the Averaging convention "NONE" should suffice.

Any help on this will be appreciated.

Thanks,

Regards
Shri