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Consider Start Date and End date in accrual scheme amortization in case of starting from mid of month

Sherif Keshta on 5/22/2019 7:36:04 AM





































































To comply with accounting matching principle between Expense and Period. Calculate Prepaid and accrual amortization (Accrual schemes) based on number of days and considering start date if not equal start day of month (period) as example below

A contract value 60,000.00 $ starting  May 20th and will end Nov 19th, would be amortized on period as the per the next table



Accrual Amortization
Start date End Date Days Percentage Amount to be amortized
5/20/2019 5/31/2019 12 0.06521 3913.04
6/1/2019 6/30/2019 30 0.16304 9782.61
7/1/2019 7/31/2019 31 0.16847 10108.70
8/1/2019 8/31/2019 31 0.16847 10108.70
9/1/2019 9/30/2019 30 0.16304 9782.61
10108.70 10/31/2019 31 0.16847 10108.70
11/1/2019 11/19/2019 19 0.10326 6195.95
184 1 60.000



Category: General Ledger
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