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You use the Oracle JD Edwards World Fixed Asset system to set up depreciation for Russia. A Russian specific depreciation method is provided, along with two Russian specific formulas.
You must run the depreciation calculations for fixed assets on a monthly basis. Depreciation in Russia is calculated by dividing the net book value by the actual remaining asset life periods.
If you post additional costs to a fixed asset, you must add the additional cost to the original cost, subtract the accumulated depreciation, and then divide that sum by the remaining life of the asset. For example, if the original cost of the asset is 120,000 Euros and the asset life is 12 months, the first month's depreciation is 10,000 Euros. If you post an additional cost of 50,000 Euros to the fixed asset during the second month, the calculation for depreciation would be (120,000 + 50,000 - 10,000)/11 = 14545.56.
Depreciation is calculated using the following formula:
(Original Cost + Additional Cost +Accumulated Depreciation - Salvage Value)/Actual Remaining Asset Life Periods
To set up depreciation for Russia
Add a new element, 64 (Actual Remaining Life Periods) to the Depreciation Formula Elements (12/DF) UDC table.
Add RU (Straight Line (SL)) and R4 (200%Declining Balance (DB)) "Russian Depreciation Method" to the Depreciation Method (12/DM) UDC table.
Add the Basis Formula, RU1 (Basis(Cst-Svg)) = 01+22+02-07 in Formula Revision (G1232, option 3).
Add the Depreciation Formula, RU2 (SL (Period)) = 10/64 in Formula Revision.
Add the Depreciation Formula, RU3 (200% DB (Period)) = 10/(03-((03-34)*12))*11 in Formula Revision.
Create a new Depreciation Rule (G1232, option 2) for each Asset Life, including the Computation Direction equal to P and the Asset Life in Periods (36, 60, 120, and so on).
Add the Default Depreciation Code for each Major Accounting Class.
For the book (ledger type), the user must fill the Depreciation Method equal to RU or R4 and the Computation Method equal to P.