Comment 4 for bug 900790

Hi Ferdinand and Amit:

There are different methods of depreciation that are relevant to different scenarios. Let me highlight two scenarios here ...and I hope they apply to your respective countries as they do in the United States:

Tax Purposes:
Depreciation starts when the asset is put into service, not when purchased. Some companies purchase and put those assets into service right away and therefore depreciation starts right away. The depreciation method for tax (the most common in the US) is MACRS - Double Declining Depreciation Method.

Internal (Also referred to as Books):
For this purpose, depreciation starts from the purchase date. Depreciation method used is straight line method.

I hope this helps.

Felix