Depreciation rounding

This topic explains how you can round fixed asset depreciation amounts up or down to the nearest whole number.

Depreciation amounts are rounded up or down, based on the value that is entered in the Round off depreciation field and the rounding method that is specified in the Rounding method field on the Depreciation books page. For a depreciation amount (x) that has a Round off depreciation value (y), the depreciation amount (z) is calculated as x ÷ y. The rounded-up or rounded-down depreciation amount is calculated as z × y. For example, for the depreciation amount CZK 1,111.11 and a Round off depreciation value of 1, the depreciation amount is calculated as CZK 1,111.11 ÷ 1, or CZK 1,111.11. The rounded-up depreciation amount is calculated as CZK 1,112 × 1, or CZK 1,112. The rounded-down depreciation amount is calculated as CZK 1,111 × 1, or CZK 1,111. The following table shows rounded-up and rounded-down depreciation amounts for various depreciation amounts and Round off depreciation values.

Depreciation amount (x) Round off depreciation (y) Depreciation amount (z = x ÷ y) Normal rounding method Downward rounding method Rounding-up rounding method
CZK 1,111.11 1 CZK 1,111.11 ÷ 1 = CZK 1,111.11 CZK 1,111.1 CZK 1,111.11 is rounded up to CZK 1,112. Final depreciation amount: CZK 1,112 × 1 = CZK 1,112 CZK 1,111.11 is rounded down to CZK 1,111. Final depreciation amount: CZK 1,111 × 1 = CZK 1,111
CZK 1,234.5 10 CZK 1,234.5 ÷ 10 = CZK 123.45 CZK 1,235 CZK 123.45 is rounded up to CZK 124. Final depreciation amount: CZK 124 × 10 = CZK 1,240 CZK 123.45 is rounded down to CZK 123. Final depreciation amount: CZK 123 × 10 = CZK 1,230