1. Fixed Assets Implementation Guide
  2. Depreciation Calculation - Process Flow

Depreciation Calculation - Process Flow

The system calculates depreciation for an asset cost based on the depreciation rules that you define. The rules relate to the category of the asset cost. The system determines which depreciation rule to use. The system associates accounting and depreciation categories in the asset master record and the cost account in the cost item balance record with the corresponding information in the depreciation rule.

This graphic illustrates the depreciation calculation process:

Depreciation Calculation process