Note: While a few Tax Methods are mentioned, this is article is primarily for issues in the Internal (GAAP) book.

Straight-line or table depreciation methods may not fully depreciate after critical changes.

If the depreciation method on an asset is RV the calculation becomes the Net Book Value as of the Beginning Date over the Remaining Life of the asset.

Why use RV? The straight-line or table depreciation methods (SL, SF, SH, AD, MF100, MT200/150/100, etc.) always take the original Acquisition Value over the original Estimated Life or a Percentage from the IRS tables. Calculation overrides using Beginning fields or critical depreciation changes that reduce the Accumulated Depreciation or shorten the Estimated Life will cause the asset to under depreciate.

The RV depreciation method adjusts the start point and basis of the calculation so that under-depreciated will fully depreciate on time.

[BCB:165:Chat Fixed Assets US:ECB]

How to fully depreciate an under depreciated asset

How to force depreciation