I feel like drawing a mental blank here can you help me out ?
Let’s say we purchase an asset in several chunks, and want to activate it and appreciate/amortize it across a certain period.
To keep things simple we assume every chunk gets appreciated/amortized linearly (i.e. equal appreciation amounts each month) over the course of 36 months.
To keep the model tidy, I don’t want to add a separate variable for each chunk, but only enter the invoiced amounts in each month in a single variable.
From that I can then calculate both cashflow (payment terms) and … at least I hope … appreciation/amortization.
So I’m looking for a formula that basically does the following:
- for a period p1, check the value in the “invoiced amount” variable
- take that invoiced amount in p1 and distribute it evenly across 36 months, i.e. p1 thru p36.
- do the same for the next period, taking the invoiced amount in p2 and distribute it evenly across 36 months, i.e. p2 thru p37
- sum up all the distribution amounts for each period to land on the total appreciation/amortization amounts per period.
Any idea ?
I’ve been playing around with ramp_normalized & Co but without success. It doesn’t feel to be too “rocket-sciency” though
Thank you & Best Regards