Understanding Depreciation Default Values

You can control the accounts and depreciation values that the system inserts into asset master and balance records when you add a new asset to the system. You simplify the entry process of new asset master records when you set up these default values:

• Accounting class

• Equipment class

• Depreciation accounts

• Revenue accounts

• Depreciation information

  Important: You must set up depreciation default values for every asset cost account in every company. Ensure that you set up depreciation default values for any new cost accounts or companies that you add to the system at a later time. If you make any changes to depreciation default values, you should verify that the defaults are correct before you enter new asset master records.

Any modifications that you make to the depreciation default values for an asset cost account or company affect only the new assets that you add to the system after making the changes. The modifications do not affect existing assets.

The company number that you associate with the asset cost and accumulated depreciation accounts must be the same as the company number that you assign to the asset.

In general, you establish a one-to-one relationship between the asset cost account and the Major Accounting Code. If you establish this one-to-one relationship, you do not need to override the default values when you set up equipment masters.