1. Fixed Assets Implementation Guide
  2. Depreciation Formulas

Depreciation Formulas

You can define or revise depreciation formulas. You can then attach the formulas to the elements of the depreciation equation in a life year rule. Use the four basic mathematical functions (+ - * /) and parentheses for nesting amounts or quantities to construct depreciation formulas in algebraic format.

The JD Edwards EnterpriseOne Fixed Assets system includes codes that you can use to represent the elements that the system uses to retrieve the related amounts or quantities from the Asset Account Balances File table (F1202), Asset Master File table (F1201), Date Fiscal Patterns table (F0008), and so on. For example, you can define a depreciation method that is based on a formula that you create to subtract salvage value from cost.

You can access the Depreciation Formula Revisions form (W12853H) directly from the Set Up User Defined Depreciation menu (G1232), or you can access the form from the Depreciation Rule Revisions program (P12851). For example, if you are revising depreciation rules and you want to update a formula that is associated with the rule, you can access the Depreciation Formula Revisions form to review and revise formulas that you have previously defined without exiting the Depreciation Rule Revisions program.

Note: User-defined depreciation formulas must have alpha identifiers to distinguish them from JD Edwards EnterpriseOne base depreciation formulas. You can modify only the alpha formulas, but you can use the numeric formulas as a starting point to create your own formulas with alpha identifiers.

The Digit Precision option divides the current number by the scale range chosen. Scale ranges are determined by the ratio of the size of the number to digit precision. For example:

  • <0 to 1

  • >1 to 10

  • >10 to 100

  • >100 to 1000

To calculate digit precision, start at the left-most number and determine how precise you want the number to be. Typically, you need to use 9-digit precision.

This chart demonstrates how digit precision is calculated:

Without 1-Digit Precision

With 1-Digit Precision

100.50

100.00

858,585.8585

900,000.00

1.00

1.00

You can adjust the formula results to the next decimal or whole number, depending on the size of the number. For example:

  • A decimal value of 5 = 0.00001.

  • A decimal value of 4 = 0.0001.

  • A decimal value of 3 = 0.001.

  • A decimal value of 2 = 0.01.

  • A decimal value of 1 = 0.1.

  • A decimal value of 6 = 1.

  • A decimal value of 7 = 10.

  • A decimal value of 8 = 100.

  • A decimal value of 9 = 1000.