AMORLINC function: Description, Usage, Syntax, Examples and Explanation
What is AMORLINC function in Excel?
AMORLINC function is one of the Financial functions in Microsoft Excel that returns the depreciation for each accounting period. This function is provided for the French accounting system. If an asset is purchased in the middle of the accounting period, the prorated depreciation is taken into account.
Syntax of AMORLINC function
AMORLINC(cost, date_purchased, first_period, salvage, period, rate, [basis])
The AMORLINC function syntax has the following arguments:
- Cost: The cost of the asset.
- Date_purchased: The date of the purchase of the asset.
- First_period: The date of the end of the first period.
- Salvage: The salvage value at the end of the life of the asset.
- Period: The period.
- Rate: The rate of depreciation.
- Basis(Optional): The year basis to be used.
Note: Problems can occur if dates are entered as text. Therefore, all dates should be entered by using the DATE function, or formatted as date under format cell to avoid errors.
|0 or omitted||360 days (NASD method)|
|3||365 days in a year|
|4||360 days in a year (European method)|
AMORLINC formula explanation
Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
Example of AMORLINC function
Steps to follow:
1. Open a new Excel worksheet.
2. Copy data in the following table below and paste it in cell A1
Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.
You can adjust the column widths to see all the data, if need be.
|39813||End of the first period|
|1||Actual basis (see above)|
|=AMORLINC(A2,A3,A4,A5,A6,A7,A7)||First period depreciation||360|