User-Defined Depreciation

The system uses depreciation rules to calculate depreciation. When you set up user-defined depreciation methods, you must define the depreciation rules, formulas, and date spreads that you want the system to use to calculate depreciation for your fixed assets.

You can define as many specific depreciation methods as the company needs without custom programming. Set up user-defined depreciation methods when you need specific depreciation algorithms other than the standard depreciation rules that are included in the JD Edwards EnterpriseOne Fixed Assets system. For example, you can copy an existing straight-line rule and insert the appropriate life period information to create a depreciation method for your specific needs.

The system stores both standard and user-defined depreciation methods in UDC table 12/DM. When you run the program to calculate depreciation, the system distinguishes user-defined methods from standard methods by a special handling code of 1. In addition, the predefined depreciation methods have a two-character numeric code. Predefined depreciation methods that you change or new depreciation methods that you create must have a two-character alpha code.

After you create a user-defined depreciation method, you must set up depreciation default values to include the new depreciation method. When you create new asset master records, the system automatically assigns a depreciation method based on the asset cost account. After you create the asset master record, you should verify the depreciation method.

The User Defined Depreciation program uses processing similar to the Job Status Inquiry program (P512000) through the use of elements within an expression formula. The spread patterns are similar to those in the Global Pattern Code Update program (P1441). User Defined Depreciation can help eliminate localization for calculating depreciation.

Consider these requirements when you calculate depreciation.