Verifying Depreciation Information

Access the Depreciation Information form.

Asset Cost Account

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

• Standard account number (business unit.object.subsidiary or flex format).

• Third GL number (maximum of 25 digits).

• Account ID number.

  The number is eight digits long.

• Speed code, which is a two-character code that you concatenate to the AAI item SP.

  You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Accum Depr Account (accumulated depreciation account)

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

• Standard account number (business unit.object.subsidiary or flex format).

• Third GL number (maximum of 25 digits).

• Account ID number.

  The number is eight digits long.

• Speed code, which is a two-character code that you concatenate to the AAI item SP.

  You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

If you use subledgers, the Asset Cost Account and Accumulated Depreciation Account must share the same subledger for depreciation to work correctly.

Depr Exp Account (depreciation expense account)

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

• Standard account number (business unit.object.subsidiary or flex format).

• Third GL number (maximum of 25 digits).

• Account ID number.

  The number is eight digits long.

• Speed code, which is a two-character code that you concatenate to the AAI item SP.

  You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Revenue Account

Specify the value that identifies an account in the general ledger. Use one of these formats to enter account numbers:

• Standard account number (business unit.object.subsidiary or flex format).

• Third GL number (maximum of 25 digits).

• Account ID number.

  The number is eight digits long.

• Speed code, which is a two-character code that you concatenate to the AAI item SP.

  You can then enter the code instead of an account number.

The first character of the account number indicates its format. You define the account format in the General Accounting constants.

Depr Meth (depreciation method)

Specify the UDC (12/DM) that indicates the method of depreciation for the specified book. In addition to any user-defined depreciation methods that you set up for the company, these standard depreciation methods are available in the JD Edwards EnterpriseOne Fixed Assets system:

00: No Depreciation Method Used.

01: Straight Line Depreciation.

02: Sum of the Year's Digits.

03: 125 percent Declining Balance with Cross Over.

04: 150 percent Declining Balance with Cross Over.

05: 200 percent Declining Balance with Cross Over.

06: Fixed percent on Declining Balance.

07: ACRS Standard Depreciation.

08: ACRS Optional Depreciation.

09: Units of Production Method.

10: MACRS Luxury Cars.

11: Fixed percent Luxury Cars.

12: MACRS Standard Depreciation.

13: MACRS Alternative Depreciation.

14: ACRS Alternate Real Property.

15: Fixed percent on Cost.

16: Fixed percent on Declining Balance with Cross Over.

17: AMT Luxury Cars.

18: ACE Luxury Cars.

Note: Any additional depreciation methods that you create for the organization must have an alpha code.

Life Mos (life months)

Specify the life of an asset in months or periods. The system uses months or periods only to express the life of an asset. For example, if the company uses a 12-month calendar, then a five-year ACRS asset has a 60-month life. If the company uses a 13 month calendar, then a five year ACRS asset has a 65 month life, and so on. You must specify a life month value for all user-defined depreciation methods and for all standard depreciation methods.

Compute Direction

Specify the code that identifies the method that the system uses to calculate depreciation based on the depreciation method you specify. Values are:

C: Current year to date.

Calculates only the current year's depreciation.

I: Inception to date.

Recalculates the entire depreciation amount from the start date through the current year. Prior year depreciation is then subtracted to determine current year depreciation. This method results in a one-time current period correction for any errors in prior period depreciation.

F: Inception to date - first rule.

Calculates inception to date (rule I) for the first rule (if there are two rules) and calculates current year to date (rule C) for the second rule.

P: Current period.

Calculates depreciation for the current period and then extrapolates the annual amount based on the cumulative percentage from the period pattern and year-to-date posting. Any depreciation calculated for the current period is subtracted.

R: Remaining months.

Depreciates the net book value as of the beginning of the current tax year over the remaining life of the asset. This results in the amortization of prior period calculation errors over the remaining life of the asset.

Start Depr (start depreciation)

Specify the date when the depreciation computations start for an asset. This date can be different from the date the asset was acquired.

Meth % (method percentage)

Specify the number that indicates the percentage that you want the system to use when calculating depreciation. You must use whole numbers. For example, enter 10 for 10 percent. The system uses a percentage when computing these methods of depreciation:

• 06: Fixed percent on Declining Balance.

  (This method of depreciation is commonly used by Canadian and utility companies.)

• 11: Fixed percent Luxury Car - Foreign.

• 15: Fixed percent of Cost.

• 16: Fixed percent on Declining Balance to Cross-Over.

The system also uses this field to compute any user-defined depreciation method in which you specify a percentage.

Meth 9 Sch No (method 9 schedule number)

Specify the alphanumeric code you assign to a units of production schedule. You must set up the schedules you want to use for method 09 (Units of Production Depreciation) in advance on the Units of Production Schedule form.

Salvage Value

Specify the amount you expect to receive in cash or trade-in allowance when you dispose of an asset at the end of its useful life.