Compute Direction

Typically, when you convert to JD Edwards EnterpriseOne software, you can decide which compute direction to use. If you are comfortable with how depreciation was computed in the old system, you can convert by using a compute direction of R (Remaining Life). This direction takes the remaining net book value and amortizes it over the remaining life periods of the asset. The system uses the Beginning Balance Forward field from the Asset Account Balances File table (F1202) during the computation of depreciation. This field determines the depreciable amount for the current year.

You might determine that you need to adjust the depreciation. For example, you might need to adjust the depreciation if the old system was not correct or a change in methods occurred. If you need to adjust depreciation, use a compute direction of I (Inception-to-Date). This compute direction causes the system to calculate depreciation for each previous year of the asset's life to determine the current depreciation amount. Inception-to-Date can result in a catch-up amount that is amortized over the first year that the asset is in the JD Edwards EnterpriseOne Fixed Assets system. A compute direction of I should be used only for the first year of the asset's life. After the first year, the compute direction should be changed to C (Current Year Depreciation). Due to the numerous years of formulas through which the system must compute, older assets require longer processing time. Therefore, using a compute direction of C improves processing.