Calculate remaining service life
Often the Remaining Service Life (RSL) of an asset is a calculation that is required as part of the auditing process.
Enabling remaining service life calculation
To enable the calculation of the RSL for your organization, specify your primary depreciation book.
To specify your primary depreciation book
Choose
, enter depreciation books, and then choose the related link.The Depreciation Books page opens.
Select the depreciation book that you want to specify as the primary depreciation book, and then on the action bar, choose Manage > Edit.
The Depreciation Book Card page opens.
On the General FastTab, turn on Use in RSL.
Remaining service life calculation on a fixed asset card
When you have enabled the RSL for a depreciation book and this book is assigned to an asset, you will see the following RSL calculations on the Fixed Asset card:
Current RSL: Specifies that the current RSL of the asset is calculated based on the asset's values in Depreciation Ending Date and Last Depreciation Date. If no depreciation has been calculated, the value is calculated based on the value in No. of Depreciation Years.
FY Start RSL: Specifies that the remaining service life at the beginning of the current fiscal year is calculated based on the values in Depreciation Ending Date and Fiscal Year Start Date for the current year.
Remaining service life calculation on the Fixed Asset Book Value 01 report
When enabled, the RSL calculation also appears on the Fixed Asset Book Value 01 report. For this report, the starting date for calculating the RSL is the Ending Date parameter from the report and the ending date is the Depreciation End Date for the asset.
How remaining service life is calculated
The RSL calculation requires a start date and end date. Usually the start date varies depending where the calculation is used.
Calculation based on 360 days
The calculation is based on 360 days when on the Depreciation Book Card page, Fiscal Year 365 is turned off.
If Starting Day = 31, then Starting Day = 30
IF Day(Ending Date + 1)= 1, then Ending Day = 30
(1 + Ending Day - Starting Day + 30 * (Ending Month - Starting Month) + 360 * (Ending Year - Starting Year)) / (12 * 30)
The following example demonstrates how the calculation works for an asset:
Starting Date = 1/1/2019 (can be fiscal year start date, can be the date of last depreciation)
Ending Date = 7/7/2024
Starting Day = 1 (If Starting Day = 31, then set it to 30)
Ending Day = 7 (If Ending Day = 1, then set it to 30)
Starting Month = 1
Ending Month = 7
Starting Year = 2019
Ending Year = 2024
End result = (1 + 7 - 1 + 30 * (7 - 1) + 360 * (2024 - 2019)) / (30 * 12) = 1987 / 30 * 12) = 5.52
Calculation based on 365 days
The calculation is based on 365 days when on the Depreciation Book Card page, Fiscal Year 365 is turned on.
For this calculation, leap days must also be considered. Leap days occur when there are 29 days in February. In the example above, leap days occur in 2020 and 2024. Leap days = 2.
If (Starting Day = 29 and Starting Month = 2) AND (Ending Day = 29 and Ending Month = 2), then Leap Days = -1 else Leap Days = 0
The calculation checks whether Feb 29th exists for each year between the starting and the ending year. If Feb 29th exists, Leap Days = Leap Days + 1 for every year in which there is a leap year.
(Ending Date - Starting Date) + 1 - Leap Days
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