Daily DAX : Day 327 AMORLINC

AMORLINC DAX Function

Description

The AMORLINC function in Power BI DAX calculates the depreciation for each accounting period using the French straight-line depreciation method (amortissement linéaire). It is designed for financial calculations, particularly in French accounting systems, where assets are depreciated linearly over their useful life, with partial periods accounted for.

Syntax

AMORLINC(<cost>, <date_purchased>, <first_period>, <salvage>, <period>, <rate>, [<basis>])
    

Parameters

• cost: The initial cost of the asset (required).
• date_purchased: The date the asset was purchased (required).
• first_period: The date of the end of the first period (required).
• salvage: The salvage value of the asset at the end of its useful life (required).
• period: The specific period for which to calculate depreciation (required).
• rate: The depreciation rate (required, as a decimal).
• basis: The day count convention (optional). Defaults to 0 (actual/actual). Options:
  • 0: Actual/actual
  • 1: Actual/360
  • 2: Actual/365
  • 3: 30/360
  
  

Return Value

The depreciation amount for the specified period.

Use Case

Scenario: A French company needs to calculate the depreciation of an asset for financial reporting, following the French accounting standard that uses linear depreciation. The asset was purchased mid-year, so partial period depreciation is needed.

Example: An asset costs $10,000, purchased on July 1, 2024, with a salvage value of $1,000, a useful life of 5 years (20% annual depreciation rate), and the first period ends on December 31, 2024. Calculate depreciation for the first period (6 months).

AMORLINC(10000, "2024-07-01", "2024-12-31", 1000, 0, 0.2, 0)
    

Result: $900 (The asset depreciates $1,800 annually [$9,000 ÷ 5 years], but since the first period is 6 months, it’s $900).

Notes

• Used primarily in French accounting systems.
• Handles partial periods (e.g., mid-year purchases).
• Ensure dates are in a valid format and align with the basis used.
• If the period is 0, it calculates depreciation for the initial partial period.