Rule Conventions

Rule conventions dictate how the system calculates depreciation, based on the life year rules and formulas that you specify for the rule. These conventions apply to the entire apportionment period that is referenced by the rule. You can set up rule conventions to:

• Override the business unit destination of the depreciation expense.

• Spread the first and last year of cost apportionment.

  For example, you can designate a rule to spread depreciation throughout the year or spread the depreciation proportionately, beginning with the depreciation start or end date.

• Allow the use of a second annual rule.

• Use the asset's life periods or the fiscal year as the beginning reference point in determining the current life year of an asset.

• Depreciate more cost than exists for an asset.

• Allow negative depreciation amounts to be computed in the formula during the life of an asset.