Understanding Units of Production Schedules

Set up units of production schedules only if you use the Units of Production method of depreciation (Method 09). You can set up schedules by ledger for as many different units of measure as the company uses, such as tons or miles.

When you are ready to close the year, ensure that you run the Units of Production Close program (R12824). The Units of Production Close program rolls the current information into prior year fields and clears the current year fields for next year's revisions and current production amounts.

The system performs two calculations based on the schedule information that you enter:

Calculation Name	Equation
Depreciable Unit Base	(Original Units) + (Prior Year Revisions) + (Current Year Revisions) - (Units Produced in the Prior Year) = (Depreciable Unit Base)
Current Units of Production	(Units Produced Year-to-Date) / (Depreciable Unit Base)= (Current Units of Production)

For assets that use the Units of Production depreciation method (Method 09), you must set up units of production schedules before you create master records.