1. Fixed Assets Implementation Guide
  2. Standard Depreciation Methods

Standard Depreciation Methods

The JD Edwards EnterpriseOne Fixed Assets system includes predefined, standard depreciation methods.

Depreciation methods 10 (MACRS Luxury Cars), 17 (AMT Luxury Cars), and 18 (ACE Luxury Cars) are user-defined depreciation methods.

These rules apply to the predefined depreciation methods that are included in the JD Edwards EnterpriseOne Fixed Assets system:

  • The system does not allow accumulated depreciation to exceed the depreciable basis.

    The depreciable basis for an asset is the asset's original cost minus its salvage value. When the total of an asset's current depreciation and accumulated depreciation is greater than the depreciable basis, the system calculates current depreciation by subtracting the accumulated depreciation from the depreciable basis.

  • The system calculates a full period's depreciation for the initial period that you acquire an asset.

    If you do not calculate depreciation for the month that you dispose of an asset, you should run the disposal before you run the depreciation. Exceptions to this rule are the mid-month, mid-quarter, and mid-year conventions.

The examples used throughout this section are based on this information, unless otherwise noted:

  • Cost: 100,000.00 USD.

  • Salvage value: 0.00.

  • Life months: 60.

  • Acquisition date: August 1, 1996.