AMORLINC

The AMORLINC function in Google Sheets calculates the depreciation for an accounting period using the French accounting system, automatically prorating the depreciation if the asset was purchased partway through a period. It's a practical choice for fixed-asset accounting where linear depreciation with mid-period purchases needs to be handled correctly. Dive into our comprehensive guide to master its application.

Parameters

• cost: The original cost of the asset.
• purchase_date: The date the asset was purchased.
• first_period_end: The date the first accounting period ends.
• salvage: The salvage (residual) value of the asset at the end of its useful life.
• period: The accounting period for which you want to calculate depreciation.
• rate: The depreciation rate of the asset.
• [basis]: [Optional] The day-count basis to use. Default is 0 (30/360).

Step-by-Step Tutorial

1. Calculating first-period depreciation:

   • Example: =AMORLINC(10000, "1/1/2024", "12/31/2024", 1000, 0, 0.15)
   • Result: will return the prorated depreciation for the initial partial period based on the purchase date and rate.

2. Calculating depreciation for a later period:

   • Example: =AMORLINC(10000, "1/1/2024", "12/31/2024", 1000, 2, 0.15)
   • Result: will return the full-period depreciation amount for period 2.

Use Cases and Scenarios

1. French Accounting Compliance: Calculate depreciation schedules that follow the French accounting system's linear depreciation rules.
2. Fixed Asset Management: Track how the value of equipment or property declines over its useful life.
3. Mid-Year Purchases: Correctly prorate depreciation for assets acquired partway through an accounting period.

Related Functions

• SLN: Calculates straight-line depreciation for an asset over a single period.
• DDB: Calculates depreciation using the double-declining balance method.
• SYD: Calculates depreciation using the sum-of-years digits method.

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