Setting Up Depreciation Ceilings
You can set up or review expense, cost, and investment tax credit (ITC) ceilings. You can associate either an expense ceiling or a cost ceiling with an asset category. If you are subject to United States tax law, you must set up depreciation ceilings for your luxury automobiles.
To set up cost, expense, or investment tax credit ceilings:
1. Open the Asset Ceilings window.
2. Choose the type of ceiling you want to set up: Cost, Expense, or ITC.
3. Enter a Name and Description of the ceiling
4. Enter the Currency for which you are defining the depreciation expense ceiling.
5. Enter Start and End dates for which the ceiling is effective. If you leave the End Date field blank, the ceiling is effective indefinitely.
6. If you are defining a depreciation Expense ceiling, enter the fiscal year of life of the asset to which the ceiling applies.
7. Enter a Ceiling amount:
Expense: Enter the maximum annual depreciation allowance for each year of the asset life. Oracle Assets uses the ceiling from the last year you set up for each year thereafter.
Cost: Enter the maximum recoverable cost Oracle Assets can use to calculate depreciation expense.
See Also
Depreciation Rules (Books)
Tax Credits
Oracle Assets System Setup
Ceiling Listing
