Technical Considerations

This table lists some technical considerations for the predefined depreciation methods:

Consideration	Explanation
Life months	Life months are not required for predefined depreciation methods 06, 09, 11, and 15. Entering life months for any of these methods is informational only. The system depreciates assets until the cost is fully depreciated or you dispose of the item. Life months are required for all user-defined depreciation methods.
Depreciating an asset after disposal	When you dispose of an asset, the disposal program zeros out the cost and accumulated depreciation amounts in the ledgers that are specified in the Disposal Account Rules program (P12141). When the specified ledger uses a mid-year convention for the asset's depreciation and the asset is not fully depreciated at the time of disposal, the depreciation program cannot calculate the final depreciation amount because cost and accumulated depreciation amounts are both zero as a result of the disposal program.
Short years	You can set up short years for the JD Edwards EnterpriseOne Fixed Assets system.
Depreciation methods that use the mid-year convention (Y)	The system begins depreciation calculations for all of the methods that use the mid-year convention at the midpoint of a regular tax year. Examples include: If an asset is placed in service during the first half of a calendar year (for example, in April, or period 4) and assigned MACRS depreciation with the mid-year convention, the system calculates depreciation only for one-half of a year, beginning in July. If an asset is placed in service during the second half of a calendar year (for example, in September, or period 9) and assigned MACRS depreciation with the mid-year convention, the system calculates depreciation only for the remaining periods.