Technical Considerations

User Defined Depreciation is a powerful and flexible feature that enables you to define how the system computes depreciation. The program provides numeric depreciation rules as models that you can copy and modify to meet the business needs. Then, when depreciation amounts are not being calculated correctly, you can resolve the problem by adjusting the depreciation rule.

When you set up user-defined depreciation rules, you define depreciation methods, compute direction, conventions, life year rules, requirements, and formulas.

In general, you observe these guidelines when using User Defined Depreciation:

• Keep track of requirements such as the asset's life, the compute direction to use, the life years of the asset, any modified start date requirements, and the conventions to use for the assets.

• Try to find a similar existing formula that you can copy when creating a new formula.

• Know what you want the result to be before setting up a formula.

• Know which element in the depreciation equation to use in the formula.

• Create the formula, using the elements, and keep track of it (for example, write it down on a separate piece of paper) to help you follow it through and understand the results.

• Select the processing options to print the formulas and the elements.

• Always run depreciation in proof mode when working with live data.

• Test the depreciation rule through the entire life of the asset, based on various fiscal date patterns.

• Use projections to automate the process.

See also:

• "Understanding Budget Patterns" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide

• Setting Up Depreciation Rules

• Setting Up Depreciation Default Values

• Verifying Depreciation Information

• Updating Global Depreciation Rules