Setting Up Depreciation Conventions

To set up depreciation conventions, use the Depr Convention Builder (CONV_BLDR_PNLG), Depr Convention Definition (DEPR_CONVENTION), Depr Convention Multiple Copy (CONV_COPY_ALL_COMP), and Depr Convention Single Copy (CONV_COPY_PNLG) components.

This topic provides an overview of depreciation conventions and discusses how to set up Depreciation Conventions.

Page Name

Definition Name

Usage

Convention Builder Page

CONV_BLDR_PNL

Create a depreciation convention. Generate depreciation conventions based on monthly accounting calendars.

Convention Definition Page

CONVENTION_DEFN

Modify a convention that you have built, or add a new convention and enter all the dates associated with it.

It is recommended that you use the Convention Builder page to add a new convention.

Depreciation Convention Single Copy

CONV_COPY_PNL

Copy one convention from a SetID or calendar to another SetID or calendar.

Depreciation Convention Multiple Copy

CONV_COPY_ALL_PAGE

Copy all conventions associated with a SetID or calendar to another SetID or calendar.

Depreciation conventions, in combination with an asset's placed-in-service date, determine when depreciation starts. For example, where a following month convention is used and an asset is placed in service on February 1, depreciation begins on March 1. PeopleSoft Asset Management delivers a wide selection of depreciation tables, including depreciation conventions. Before you set up your own Depreciation Conventions table, review the delivered tables to determine if you can use them as delivered or if modifications are required.

PeopleSoft Asset Management provides a series of pages that enable you to:

  • Define a depreciation convention and automatically generate start, end, and begin depreciation dates based on a selected calendar.

  • Modify the dates associated with a convention without regenerating it.

  • Copy conventions associated with a SetID or calendar:

    • Copy one convention associated with a SetID or calendar to another SetID or calendar.

    • Copy all conventions associated with a SetID or calendar to another SetID or calendar.

Use the Convention Builder page (CONV_BLDR_PNL) to create a depreciation convention.

Generate depreciation conventions based on monthly accounting calendars.

Image: Convention Builder page

This example illustrates the fields and controls on the Convention Builder page. You can find definitions for the fields and controls later on this page.

Convention Builder page

Field or Control

Definition

Period Options

Select Mid Period or Days. Use Daysto begin depreciation based on the value specified in the Begin Date field. Use Mid Period for mid-month and mid-quarter conventions.

Generate Options

This table summarizes how the system determines the begin depreciation date for each convention type, and indicates which fields can be overridden:

Convention Type

Begin Depreciation Date

Mid Month

15 appears by default for Which Day; the begin depreciation date is day 15 of the calendar period. You can override Which Day.

End of Month

Uses the end date of the month as the begin depreciation date. You cannot override this.

End of Quarter

Uses the end date of the quarter as the begin depreciation date. You cannot override this.

End of Year

Uses the end date of the year as the begin depreciation date. You cannot override this.

Following Month

Adds one day to the end day of the month, and identifies this as the begin depreciation date. You cannot override this.

Full Year

Uses the current day of the current month as the begin depreciation date. You cannot override this.

Half Year

1 appears by default for Which Day; 7 appears by default for Which Month, so day 1 of period 7 in the calendar is the begin depreciation date. You can override Which Day and Which Month.

Mid Quarter

15 appears by default for Which Day; 2 appears by default for Which Month, so day 15 of the second month in the quarter is the begin depreciation date. You can override Which Day only.

User Defined

No defaults are provided. Specify values for Which Day, Which Month, and Summary Periods.

Begin Depr Date Options

Enter the options for which to begin depreciation for those conventions that you can override:

Field or Control

Definition

Which Day

Enter the numerical day of the month when depreciation is to begin.

Which Month

Enter the numerical month when depreciation is to begin.

Summary Periods

Specify how many months will be grouped or summarized into one period of the year. For example, if the Summary Periods value is 1, there will be 1 month per 1 period and there will be a total of 12 periods in one year. If the Summary Periods value is 3, there will be 3 months in 1 period and there will be a total of 4 periods in one year.

An example of beginning depreciation date options is as follows:

  • Summary Periods = 3 (three months in one period)

  • Which Month = 2 (second month within the period)

  • Which Day = 15 (15th day of the second month)

Period

Begin Date

End Date

Begin Depr Date

Period 1

January 1, 2009

March 31, 2009

February 15, 2009

Period 2

April 1, 2009

June 30, 2009

May 15, 2009

Period 3

July 1, 2009

September 30, 2009

August 15, 2009

Period 4

October 1, 2009

December 31, 2009

November 15, 2009

Period 5 (next year)

January 1, 2010

March 31, 2010

February 15, 2010

Calendar Options

Field or Control

Definition

Full Calendar

Select to build conventions for all years. When selecting this option, the From Year and To Year fields are unavailable.

Portion of Calendar

Select to build conventions for the years that you specify. When selecting this option, supply the From Year and To Year fields.

Click the Generate button to build the conventions based upon the options that you selected.

Use the Convention Definition page (CONVENTION_DEFN) to modify a convention that you have built, or add a new convention and enter all the dates associated with it.

Select System Maintained to use standard depreciation conventions that are delivered with and maintained by the PeopleSoft system.

Note: You cannot enter the from date, to date, or the begin depreciation date for system-maintained depreciation conventions.