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# Double Declining Balance: Calculation of depreciation on monthly basis

The new depreciation key should be calculated as follows:

Method 1 is to be used for the first third of the assets useful life.

Method 2 is to be used AFTER the first third of the assets usefule life has elapsed, if it is greater than Method 1.

Method 1 (DDB):

Monthly depreciation = (NBV / TOTAL Useful Life in months) * 2

Method 2 (STL):

Monthly depreciation = NBV / REMAINING Useful life in months

It should do the calculation based on useful life as months not year, which means the planned depreciation will be different every month.

e.g: APC : Value = 3600

useful life = 36 moths (3 years)

1 month planned deprciation would be = 200 (DDB)

2 month planned deprciation would be = 188.79 (DDB)

3 month planned deprciation would be = 178.40 (DDB)

and so on..

Please help me out in getting the correct way to create depreciation key to meet my exact requirement.

Thanks

##### Kiran TatineniJanuary 20, 2010 at 10:35 AM0 Likes
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