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How a depreciation method is calculated, Calculating straight line depreciation, 83 capacity in capacity manager – HP Storage Essentials NAS Manager Software User Manual

Page 603: Calculating, Straight line depreciation

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Storage Essentials 5.00.01 User Guide 573

gigabytes (0.887 GB) and round the output (0.89 GB), the capacity in Capacity Manager matches

the number in Chargeback Manager.

Figure 83

Capacity in Capacity Manager

How a Depreciation Method Is Calculated

This section describes the following:

Calculating Straight Line Depreciation

” on page 573

Calculating Fixed Declining Balance

” on page 574

Calculating Double Declining Balance

” on page 576

Calculating Straight Line Depreciation

When the management server calculates straight line depreciation, it calculates depreciation based

on a fixed rate. These instructions describe how the management server performs the straight line

depreciation calculation. An example is provided for each step so that you can try the calculations

for yourself.
The following is how the management server calculates straight line depreciation:

1.

The management server rolls back the purchase date to the beginning of the purchase month. If

the purchase date is later than today (for example, a future purchase), then the purchase date is

roll back to today.
Example: Assume the purchase date of an element is January 15, 2003. The management

server adjusts the purchased date to January 1, 2003 when calculating months to depreciate.

2.

It determines the period ending date. This is equivalent to the last day of the previous full month.
Example: Assume today's date is January 9, 2004. The management server sets the period

ending to December 31, 2003.

3.

The management server calculates the delta between purchase date and the period ending. This

determines how many months worth of depreciation amount the management server need to

take into account.