Microsoft Knowledge Base

XL: Incorrect Formula in Help for DDB Function
Last reviewed: April 24, 1997
Article ID: Q165722
The information in this article applies to:
  • Microsoft Excel 97 for Windows
  • Microsoft Excel for Windows 95, version 7.0
  • Microsoft Excel for Windows, versions 3.0, 4.0, 4.0a, 5.0, 5.0c
  • Microsoft Excel for the Macintosh, versions 3.0, 4.0, 5.0, 5.0a

SYMPTOMS

In the "User's Guide" for Microsoft Excel and in Help, the formula that is used to calculate the double-declining balance function (DDB) is incorrect.

CAUSE

In the "User's Guide" and in Help, the DDB worksheet function uses the following formula to calculate depreciation for a period: 

   Cost-Salvage(Total_Depreciation_From_Prior_Periods)*Factor/Life
This formula is incorrect. If you use this formula it does not return the same result that the DDB function returns.

RESOLUTION

To calculate depreciation using the DDB method for all periods up to the last period, use the following formula: 

   ((Cost - Salvage) - Depreciation_From _Prior_Periods) * (Factor / Life)
NOTE: In the last period the depreciation must be calculated using the following formula: 

   Cost - Salvage - Depreciation_From _Prior_Periods

STATUS

Microsoft has confirmed this to be a problem in the Microsoft products listed at the beginning of this article. We are researching this problem and will post new information here in the Microsoft Knowledge Base as it becomes available.

MORE INFORMATION

The DDB worksheet function returns the depreciation of an asset for a specified period using the double-declining balance method or some other method that you specify. The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.

REFERENCES

For more information about the DDB function, click the Index tab in Microsoft Excel Help, type the following text 

   ddb
and then double-click the selected text to go to the "DDB worksheet function" topic.

Additional query words: xl5 xl7 XL97 docerr
Keywords : kbusage xlformula
Version : 3.0 4.0 5.0 5.0a 5.0c 7.0 97
Platform : MACINTOSH WINDOWS
Issue type : kbdocerr

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Last reviewed: April 24, 1997
©1997 Microsoft Corporation. All rights reserved. Legal Notices.