PeopleSoft Enterprise Asset Management 9.1 PeopleBook

Using User-Defined Asset Depreciation

This chapter provides an overview of user-defined depreciation and discusses how to:

Create a user-defined depreciation method.
View user-defined variables.
Review user-defined methods.
Generate a user-defined depreciation SQC program.
Copy a user-defined depreciation method.
Select a user-defined depreciation method for an asset.

Understanding User-Defined Depreciation

PeopleSoft Asset Management enables you to create and use your own depreciation method. This section provides the information that you need to do so.

To create and use depreciation methods:

Review the variables available for use in your depreciation formula.

This section includes a table that lists the commonly used user-defined depreciation variables. Also included is an inquiry page, where you can review these variables within the system. Review the available variables, and then proceed to create depreciation formulae.
Define the formula that you want to use for depreciation.

Do this in a series of steps, and then review the steps on a summary page that we provide for this purpose.
Assign the user-defined method to assets.

You can do this on several different pages within the system.
Save the user-defined depreciation method.
Generate a user-defined method SQC program.

This SQC is called by the main depreciation calculation program, AM_DEPR_CALC, during depreciation calculations. It processes all user-defined depreciation methods by setID.

Creating or Selecting Variables

PeopleSoft provides a listing of the user-defined depreciation variables that are commonly used to construct the depreciation formula. The following table shows the variable name, the corresponding program variable, and whether a variable can be assigned a calculation result. Review this information to see if you can use it to construct your formula.

Variable	Program Variable	Assign To Flag
ALLOC_LIFE	# ALLOC_LIFE	N
ALLOC_TOTAL	#ALLOC_TOTAL	N
ASSET_BASIS	#ASSET BASIS	N
ASSET_COST	#ASSET_COST	N
ASSET_COST_PER_CHARTFIELD	#LINE_COST	N
ASSET_LIFE	#ASSET_LIFE	N
BEGIN_DEPR_PERIOD	#BEGIN_DEPR_PD	N
BEGIN_DEPR_YEAR	#BEGIN_DEPR_FY	N
CURRENT_YEAR	#SELECTED_FY	N
DB_PERCENT	#DB_PERCENT	N
DEPR	#DEPR	Y
DEPR_LOW_LIMIT	# DEPR_LOW_LIMIT	N
DEPR_PERCENT	#FLAT_PERCENT	N
LIFE_IN_YEARS	# LIFE_IN_YEARS	N
LIFE_REMAINING	#LIFE_REMAINING	N
LINE_COST_FRACTION	#LINE_COST_FRACTION	N
LTD_DEPR	#LTD_DEPR	N
NO_OF_PERIODS_IN_YEAR	#NUMBER_OF_PERIODS	N
NO_OF_PERIODS_TO_DEPR	# ALLOC	N
RESULT_A	#RESULT_A	Y
RESULT_B	#RESULT_B	Y
RESULT_C	#RESULT_C	Y
RESULT_D	#RESULT_D	Y
RESULT_E	#RESULT_E	Y
RESULT_F	#RESULT_F	Y
RESULT_G	#RESULT_G	Y
RESULT_H	#RESULT_H	Y
RESULT_I	#RESULT_I	Y
RESULT_J	#RESULT_J	Y
RESULT_K	#RESULT_K	Y
RESULT_L	#RESULT_L	Y
RESULT_M	#RESULT_M	Y
RESULT_N	#RESULT_N	Y
SALVAGE_VALUE	#SALVAGE_VALUE	N
TOTAL_PERIODS_DEPR	#PERIOD_COUNT_ACCUM	N
UDX1	# UDX1	Y
UDX2	# UDX2	Y
UDX3	# UDX3	Y
UDX4	# UDX4	Y
UDX5	# UDX5	Y
UDX6	# UDX6	Y

Page Used to Create or Select Variables

Page Name	Definition Name	Navigation	Usage
User Defined Variables	UD_VARIABLE_DEFN	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Variables, User Defined Variables	Create a new variable or select an existing variable.
Review User Defined Methods - User Defined Variables	UD_VARIABLE_INQ	Set Up Financials/Supply Chain, Product Related, Asset Management, Review User Defined Methods, User Defined Variables, User Defined Variables	View or select an existing variable.

Creating or Selecting Variables

Access the User Defined Variables page (Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Variables, User Defined Variables).

Assign To Variable

Indicates whether you can assign the resultant value to this variable.

Program Variable

Identifies and references the user-defined variable name with the corresponding internal AM_DEPR_CALC or AMDPCUDM program variable name.

Initialize

Note. This check box appears only for variables that have the Assign To Variable selected.

Determines whether you can initialize the content of a variable during consecutive year calculation in order to use the variable content in the calculation for the subsequent years.

Creating a User-Defined Depreciation Method

Once you have designed the depreciation formula, you must enter it into PeopleSoft Asset Management. The User Defined Method component consists of three pages on which you define the custom depreciation formula, see a summary page of the formula that you entered, and add comments about the formula for reference as appropriate.

The User Defined Methods component (UD_METHOD) contains the pages to create and review custom depreciation formulas.

This section provides and overview of and discusses how to create and view user-defined depreciation methods, particularly how to:

Enter the user-defined depreciation method.
Summarize the user-defined method.
Describe the user-defined method.

Pages Used to Create a User-Defined Depreciation Method

Page Name	Definition Name	Navigation	Usage
User-Defined Method - Definition	UD_METHOD_DEFN	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods	Create a user-defined depreciation method. Note. Method ID is the five-character identifier for the user-defined depreciation method that you create.
User Defined Methods - Definition (inquiry)	UD_METHOD_INQ	Set Up Financials/Supply Chain, Product Related, Asset Management, Review User Defined Methods, User Defined Methods	View the custom depreciation formula.
User Defined Methods - Summary	UD_METHOD_SUMMARY	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods, Summary Set Up Financials/Supply Chain, Product Related, Asset Management, Review User Defined Methods, User Defined Methods, Summary	View a visual representation of the complete depreciation formula that you entered.
User Defined Methods - Comment	UD_METHOD_COMMENT	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods, Comment Set Up Financials/Supply Chain, Product Related, Asset Management, Review User Defined Methods, User Defined Methods, Comment	Enter or view additional comments or explanations of this depreciation method.

Entering the User-Defined Depreciation Method

Access the User Defined Methods - Definition page (Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods, Definition).

Formula Sequence

The system displays a sequence number. The sequence numbers are incremented by 10s (10, 20, and so on). You can change the sequence number if you like. Add a description of the sequence in the field provided.

For example, you can break the following depreciation formula into steps that you can enter as separate sequences on this page:

Depreciation = (Asset Cost / Asset Life) × Number of Periods to be Depreciated

You can write the depreciation formula as two steps, or sequences:

Step 1

Result A = Asset Cost / Asset Life
Step 2

Depreciation = Result A × No. of periods to be depreciated

Condition

None	The default.
If	Indicates the beginning of an If statement within an If-Then-Else construct.
Then	Indicates the beginning of the Then statement within an If-Then-Else construct.
Else	Indicates the beginning of the Else statement within an If-Then-Else construct.
And	Indicates that you want to include both variables in the search.
Or	Indicates that you want to include either variable in the search.

You can create and/or statements, if-then-else statements, and multiple if-then-else statements. You cannot use nested if statements.

Operand 1

Constant	Select to indicate a value, and then enter the value.
Variable	Select to indicate a user-defined variable.

Operation

Select the arithmetic operator.

Operand 2

Constant	Select to indicate a value, and then enter the value.
Variable	Select to indicate a user-defined variable.

Result

Result	Specify a name for the result of this operation. The result can be any user-defined variable for which the Assign To Variable check box on the User Defined Variables page is selected.
Validate	Click to ensure that the syntax that you entered is correct. The program performs a validation check and prompts you with an error message to correct any syntax mistakes.
Sort	Click to redisplay the sequence of steps that you entered in ascending sequence order, if you have edited some steps into the formula.

End If

Select End If to indicate that this is the end of an If-Then-Else construct.

Generating a User-Defined Depreciation SQC Program

Once you have created a new user-defined depreciation method, you must regenerate the AMUDDEPR.SQC program that is called by the main depreciation calculation program AM_DEPR_CALC during the depreciation calculation process.

Page Used to Generate a User-Defined Depreciation SQC Program

Page Name	Definition Name	Navigation	Usage
Generate User Defined Methods	RUN_AMUD_METHOD	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, Generate User Defined Methods, Generate User Defined Methods	Regenerate the AMUDDEPR.SQC program that is called by the main depreciation calculation program AM_DEPR_CALC during the depreciation calculation process.

Using the User Defined Method Generate Page

Access the Generate User Defined Methods page (Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, Generate User Defined Methods, Generate User Defined Methods).

The program automatically processes all user-defined depreciation method IDs that you created for that setID.

Note. Make sure that you copy the output file as AMUDDEPR.SQC in the same directory where the AMDPCALC.SQR program is located.

If you receive any error messages when you run AM_DEPR_CALC, verify that you have copied the SQC properly to the directory where AMDPCALC is stored.

Process Scheduler runs the AMUDMTHD process at user-defined intervals.

Copying a User-Defined Depreciation Method

You can copy an existing user-defined depreciation formula when you define a new method that is similar to an existing one. You can copy the existing formula and modify it for the requirements of the new method, rather than defining it from scratch.

Page Used to Copy a User-Defined Depreciation Method

Page Name	Definition Name	Navigation	Usage
User Defined Method Copy	UD_METHOD_COPY	Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods-Copy, User Defined Method Copy	Copy a user-defined depreciation method. Note. Enter the method ID of the user-defined depreciation method that you want to copy.

Page Name

Definition Name

Navigation

Usage

User Defined Method Copy

UD_METHOD_COPY

Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods-Copy, User Defined Method Copy

Copy a user-defined depreciation method.

Note. Enter the method ID of the user-defined depreciation method that you want to copy.

Copying a User-Defined Method

Access the User Defined Method Copy page (Set Up Financials/Supply Chain, Product Related, Asset Management, Depreciation, User Defined Methods-Copy).

New SetID

Select the ID for the new depreciation method; it may be the same or different from the depreciation method from which you are copying.

New Method ID

Enter an ID and a description for the new depreciation method. The description and Comment field appear by default from the old method; you can modify them.

After you have saved the new method, click the Go to Maintain User Defined Method Page link to modify the new copied method, if appropriate.

Note. You must save the new depreciation method before you can modify it.

Selecting a User-Defined Depreciation Method for an Asset

Once you have created a user-defined depreciation method and generated the SQC, the method is available for selection as the depreciation method to be used for an asset. You do this when you:

Specify a user-defined depreciation method for the asset profile.
Complete an Asset Book Definition.
Add an asset with ExpressAdd.

New SetID	Select the ID for the new depreciation method; it may be the same or different from the depreciation method from which you are copying.
New Method ID	Enter an ID and a description for the new depreciation method. The description and Comment field appear by default from the old method; you can modify them.