(06-01-2012, 06:29 PM)phil Wrote: Depreciation starts from when you add the asset... you just add the asset when you purchase it?
Hi Phil:
Yes, example today I rented a location and pay X. Rent starts in 6 month's time.
I already have the right for that location, thus it's an asset for the company starting today (if tomorrow we sell the company, it has more value, as has the right to use a location in the future). BUT if I assign it to the asset manager today, will start depreciating next month, and should not. Should start on the 6th month...
It's a pretty usual way of renting properties in this part of the world (for prime location). You rent now (paying now in full 3, 5 or 10 years of rent), and the rental period starts as soon as the previous guy leaves the premises, the day before you go in.
Yes, it's a symptom of financial bubble, but it's happening
so, should be able to be recorded in webERP.
Could it be done to start depreciating after purchasing date?