Common Fields Used in This Chapter

Accumulated Depreciation

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

Standard account number (business unit.object.subsidiary or flex format).
Third GL number (maximum of 25 digits).
Account ID number.
The number is eight digits long.
Speed code, which is a two-character code that you concatenate to the AAI item SP.
You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Allow Negative Depreciation

Specify the code that indicates whether you want to allow depreciation formulas to calculate negative amounts. Values are:

0: No, negative depreciation not allowed.

1: Yes, accumulated depreciation may be less than adjusted basis.

You can enter a 1 for yes (Y) or a 0 for no (N). The default value is N.

Allow Over Depreciation

Specify whether you want the system to stop depreciation at the remaining basis or calculate the depreciation beyond the normal life of an asset. Remaining basis is defined as cost less accumulated depreciation less salvage. The system uses this field in conjunction with the Allow Negative Depreciation field. Values are:

Blank: Depreciation beyond remaining basis is not allowed.

Calculate remaining basis at the end of asset life. This is the default.

1: Depreciation may exceed remaining basis during asset life.

Calculate remaining basis at the end of asset life.

2: Depreciation beyond remaining basis is not allowed.

Allow depreciation beyond asset life.

3: Depreciation may exceed remaining basis during asset life.

Allow depreciation beyond asset life.

Asset Cost Obj/Subsidiary (asset cost object.subsidiary)

Specify the number that indicates the general ledger account (object number) used to record a fixed asset's acquisition cost. Within each company, you define default coding instructions for asset cost accounts. Then, based on these default codes, when you set up a new asset, the system automatically assigns:

Major and subclass codes.
GL accounts for depreciation and revenue.
Depreciation books.

Date Fiscal Year Begins

Specify the first day of the fiscal year.

Depreciation Expense

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

Standard account number (business unit.object.subsidiary or flex format).
Third GL number (maximum of 25 digits).
Account ID number.
The number is eight digits long.
Speed code, which is a two-character code that you concatenate to the AAI item SP.
You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Depreciation Expense Business Unit

Specify the code that allows an override of the destination of the depreciation expense. Values are:

Blank: No Override.

1: Responsible Business Unit.

2: Location Business Unit.

Depr Info (depreciation information)

Specify the code for additional depreciation information. This code is used for investment tax credit (ITC) and averaging conventions. The system validates the code you enter in this field against UDC table (12/AC). Values are:

A: Actual Depreciation Start.

F: First-half/2nd-half convention.

H: Half-Year.

M: Mid-Month Convention.

N: 1st Day of Next Period.

P: Middle of Period.

Q: Mid-Quarter Convention.

R: 1st Day of Next Year.

S: 1st Actual/2nd Period Start.

Y: Mid-Year Convention.

W: Whole Year Convention.

0: No ITC Taken.

1: Three Year Method (3 1/3 percent).

2: Five Year Method (6 2/3 percent).

3: Seven Year Method (10 percent).

4: ACRS with Basis Reduction - 10 percent ITC.

5: ACRS without Basis Reduction.

Note:

Numeric codes apply to standard depreciation methods only. To determine the date for F (First-half/Second-half), use these guidelines:

If the asset was placed in service in the first half of the year, then the adjusted depreciation start date is the first day of the year.

If the asset was placed in service in the second half of the year, then the adjusted depreciation start date is the first day of the succeeding year.

The first half of the year expires at the close of the last day of the calendar month that is closest to the middle of the tax year.

The second half of the year begins the day after the expiration of the first half of the tax year.

Depreciation Method and Depr Meth (depreciation method)

Specify the UDC (12/DM) that indicates the method of depreciation for the specified book. In addition to any user-defined depreciation methods that you set up for the company, these standard depreciation methods are available in the JD Edwards EnterpriseOne Fixed Assets system:

00: No Depreciation Method Used.

01: Straight Line Depreciation.

02: Sum of the Year's Digits.

03: 125 percent Declining Balance with Cross Over.

04: 150 percent Declining Balance with Cross Over.

05: 200 percent Declining Balance with Cross Over.

06: Fixed percent on Declining Balance.

07: ACRS Standard Depreciation.

08: ACRS Optional Depreciation.

09: Units of Production Method.

10: MACRS Luxury Cars.

11: Fixed percent Luxury Cars.

12: MACRS Standard Depreciation.

13: MACRS Alternative Depreciation.

14: ACRS Alternate Real Property.

15: Fixed percent on Cost.

16: Fixed percent on Declining Balance with Cross Over.

17: AMT Luxury Cars.

18: ACE Luxury Cars

Note: Any additional depreciation methods that you create for the organization must have an alpha code.

Disposal Year

Specify the code that designates how you want the system to apportion depreciation when you dispose of the asset. Values are:

Blank: To End of Disposal Period.

A: Actual Disposal Date.

C: Continue.

F: First-Half / Second-Half.

H: Half-Year.

I: Inverse of ITAC.

L: Last Day of Previous Period.

M: Mid-Month.

N: None.

P: Middle of Period.

Q: Mid-Quarter.

Y: Mid-Year.

Edit Disable

Select this option to indicate that the depreciation rule is a protected rule and to prevent changes to the rule.

You can use a processing option to disable this option for additional security.

Effective Thru Date

Specify the date on which the item, transaction, or table becomes inactive, or through which you want transactions to appear. This field is used generically throughout the system. It could be a lease effective date, a price or cost effective date, a currency effective date, a tax rate effective date, or whatever is appropriate.

End Date

Complete for each period in the date pattern.

First Year Spread

Specify the code that designates how you want the system to apportion the first year of depreciation for an asset. Values are:

Blank: Modified Depreciation Start.

1: Entire Year.

2: Actual Depreciation Start Date.

3: Placed in Service Period.

Fiscal Date Pattern

Specify the code that identifies date patterns. You can use one of 15 codes. You must set up special codes (letters A through N) for 4-4-5, 13-period accounting, or any other date pattern unique to the environment. An R, the default, identifies a regular calendar pattern.

In Service From Date

Specify the beginning date for which the transaction or code is applicable.

Last Year Spread

Specify the code that designates how you want the system to apportion the last year of depreciation for an asset. Values are:

Blank: Modified depreciation end date.

1: Entire Year.

Life Mos (life months)

Specify the life of an asset in months or periods. The system uses months or periods only to express the life of an asset. For example, if the company uses a 12 month calendar, then a five year ACRS asset has a 60 month life. If the company uses a 13 month calendar, then a five year ACRS asset has a 65 month life, and so on. You must specify a life month value for all user-defined depreciation methods and for all standard depreciation methods.

Life Year Reference

Specify the code that designates the beginning reference point from which you want the system to determine the current life year of an asset. This requires a compute direction of P. Values are:

Blank: 1st day of depreciation start.

1: Depreciation start (modified).

Major Accounting Class

Specify the UDC (12/C1) that determines the accounting class category code. You use this accounting category code to classify assets into groups or families, for example, 100 for land, 200 for vehicles, and 300 for general office equipment.

In general, you set up major class codes that correspond to the major general ledger object accounts in order to facilitate the reconciliation to the general ledger.

Note: If you do not want to use the major accounting class code, you must set up a value for blank in the UDC table.

Meth % (method percentage)

Specify what percentage you want the system to use when calculating depreciation. You must use whole numbers. For example, enter 10 for 10 percent. The system uses a percentage when computing these methods of depreciation:

06: Fixed percent on Declining Balance.
(This method of depreciation is commonly used by Canadian and utility companies.)
11: Fixed percent Luxury Car - Foreign.
15: Fixed percent of Cost.
16: Fixed percent on Declining Balance to Cross-Over.

The system also uses this field to compute any user-defined depreciation method in which you specify a percentage.

Meth 9 Sch No (method 9 schedule number)

Specify the alphanumeric code you assign to a units of production schedule. You must set up the schedules you want to use for method 09 (Units of Production Depreciation) in advance on the Units of Production Schedule form.

Meth Comp (method of computation)

Specify the method that the system uses to calculate depreciation based on the depreciation method you specify. Values are:

C: Current year to date.

Calculates only the current year's depreciation.

I: Inception to date.

Recalculates the entire depreciation amount from the start date through the current year. Prior year depreciation is then subtracted to determine current year depreciation. This method results in a one-time current period correction for any errors in prior period depreciation.

F: Inception to date - first rule.

Calculates inception to date (rule I) for the first rule (if there are two rules) and calculates current year to date (rule C) for the second rule.

P: Current period.

Calculates depreciation for the current period and then extrapolates the annual amount based on the cumulative percentage from the period pattern and year-to-date posting. Any depreciation calculated for the current period is subtracted.

R: Remaining months.

Depreciates the net book value as of the beginning of the current tax year over the remaining life of the asset. This results in the amortization of prior period calculation errors over the remaining life of the asset.

Revenue Credit

Identify an account in the general ledger. Use one of these formats to enter account numbers:

Standard account number (business unit.object.subsidiary or flex format).
Third GL number (maximum of 25 digits).
Account ID number.
The number is eight digits long.
Speed code, which is a two-character code that you concatenate to the AAI item SP.
You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Secondary Acct/% (secondary account/percent)

Specify how the system uses the amount calculated by the Secondary Account/Percent rule when determining the annual depreciation amount. Values are:

Blank: No secondary percentage.

1: Greater of amounts calculated by Rule 1 or Rule 2.

2: Lesser of amounts calculated by Rule 1 or Rule 2.

6: Amount from Rule 1 to Accumulated Depreciation Account 1.

Amount from Rule 2 to Accumulated Depreciation Account 2.

7: Amount from Rule 1 to Accumulated Depreciation Account 1 and Depreciation Expense Account 1.

Amount from Rule 2 to Accumulated Depreciation Account 2 and Depreciation Expense Account 2.

8: ((Rule 1 Amount) + (Rule 2 Amount)) - ((Accumulated Depreciation Account 1) + (Accumulated Depreciation Account 2) + (Depreciation Expense Account 1) + (Depreciation Expense Account 2) + (Depreciation Expense Account 3)).

The system uses this field in conjunction with the Secondary Percent Continuation field.