Understanding Asset Depreciation Methods

When you create a master record, the system automatically assigns the depreciation method based on the depreciation default value that you set up. The system performs depreciation calculations based on the established depreciation rules for each depreciation method.

Although the JD Edwards EnterpriseOne Fixed Assets system provides a wide range of standard depreciation methods, you might need a specific depreciation algorithm. You can modify a standard depreciation method, or you can create your own depreciation method.

An organization that operates in a multisite, multinational, or multicurrency environment is likely to require a broad sample of the variations of the elements of depreciation. With asset depreciation, you can access all the elements of the depreciation equation. You can use these elements to define depreciation methods to meet your unique depreciation needs.

This section discusses:

• Elements of asset depreciation

• Depreciation concepts

• Depreciation rule components

• Depreciation calculation - process flow