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How a depreciation method is calculated, Calculating straight line depreciation, 117 capacity in capacity manager – HP Storage Essentials Enterprise Edition Software User Manual

Page 695: Calculating, Straight line depreciation

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HP Storage Essentials SRM 6.0 User Guide 657

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

matches the number in Chargeback Manager.

Figure 117

Capacity in Capacity Manager

How a Depreciation Method Is Calculated

This section contains the following topics:

Calculating Straight Line Depreciation

, page 657

Calculating Fixed Declining Balance

, page 658

Calculating Double Declining Balance

, page 660

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

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

server adjusts the purchase 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 the purchase date and the period ending

date. This determines how many month’s worth of depreciation amount the management server

need to take into account.

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