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Years in decimals convert to date from a specific date (using calendar month not average)

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    Years in decimals convert to date from a specific date (using calendar month not average)

    Hi all,

    I am really struggling with this.

    I have tried EDATE/DATE/YEARFRAC/EOMONTH but cannot get this right as some formulas average out based on 30 days.

    Depreciation is calculated by Day
    Straight Line Method is used
    Depreciation rate 25%
    Useful Life 4



    Original cost of asset $20,978.80
    Acquistion date 22/12/2017
    Commission Date 1/12/2018
    Total Depreciation charged to 31/12/21 $20,533.29
    Useful Life 3.1699
    Expired Life (as at 31/12/21) 3.0800




    Closing period 31/12/2021
    Remaining Life in Years (as at 31/12/21) 0.089900
    NBV $445.51


    Start Date (To calculate from) 1/01/2022





    Questions:
    1 What would the end date be - In Years (if calculating from start date 1/1/22)
    2 What would the end date be - In Calendar Month (if calculating from start date 1/1/22)
    3 What would the end date be - In Days (if calculating from start date 1/1/22)
    4 How do I convert remaining years into months if day depreciation is used? I cannot use months here I need calendar months. I also need the fraction/decimal ( (if calculating from start date 1/1/22)



    What I do know is this:
    Depreciation was charged as follows:
    Jan-22 $445.44
    Feb-22 $0.07


    The acquisition dates/commission dates and due to many adjustments (changed systems) calculations are all over the place. I am just working on trying to clean this up to push into Workday.
    I am able to round to 6 decimal places in workday. I am not looking for any rounding here.
    Attached Files Attached Files

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    Re: Years in decimals convert to date from a specific date (using calendar month not avera

    My "naive" answer -- the solution depends, I expect, on exactly how you convert fractional years to days. I have no expertise in accounting/finance, so I'm not sure I know how one should convert to days here. My naive answer would be to convert years to days using the "standard" definition of a year (about 365.25 days), then add that many days to the start date =44562+years*365.25 (44562 is the serial number for 1/1/2022). I suspect, though, that the accountant conversion from years to days is different (and maybe more complicated). Can you explain the process (even if you don't know the Excel formula that would do it) you use to go from fractional years to future date?
    Quote Originally Posted by shg
    Mathematics is the native language of the natural world. Just trying to become literate.

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    Re: Years in decimals convert to date from a specific date (using calendar month not avera

    Thanks for your response.

    As an example if we look at Jan-22/Year 2022.

    Number of Days (Jan-22 = 31)/Number of total days in year (2022 = 365) x Total Cost ($20,978.80)/Useful Life (4 Years).

    I am trying to calculate the end date based off the remaining useful life (0.089900 years) from 1/1/2022.

    The problem is the data in the old system has been changed and does not make sense despite what dates i use. It does not make sense to charge for Jan-22 because technically it should have been fully depreciated as at 31/12/2021. (based on Acquisition date 22/12/17 or commission date 1/12/18). So in a nutshell i am losing my mind of best approach to convert 0.089900 years into periods (calendar months) from 1/1/22 especially because depreciation is calculated daily and i do not have any reports showing deprecation end date.

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    Re: Years in decimals convert to date from a specific date (using calendar month not avera

    I'm still not sure I understand the desired algorithm for going from years to future date.

    I note that 0.0899*365 is about 33 days -- pretty close to 1 month. 1 month is 1/12 (0.083333) of a year, would you prefer to convert years to months (fractional year * 12), then use the number of months (ignore fractional months??) to estimate the ending date?

    I really don't know how accountants/financial analysts do this kind of thing.

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