Right now my company uses the next month averaging convention for depreciation but we want to change to none so that we start depreciation when the asset is placed in service. I'm trying to understand how depreciation is calculated right now with next month averaging but I'm having difficulties getting the exact formula that GP is using. I'm using the formula " (cost basis - salvage value)/((365*# of years) + days) " which works for most of our assets but others vary differently from this. We are also on a 4-4-5 fiscal year and I noticed that last year's current rate depreciation is higher than what it is for this fiscal year. Is there a consistent formula that is used for all of our assets?
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