Understanding the Life End Date Program
Any asset generally has a limited life and, over a period of time, loses its value to a company. Depreciation charges are used to account for the loss in value and are spread over the useful life of the asset.
Run the Life End Date report (R76C1208) to validate the fixed assets that finished depreciating in the month that you specify (the net book value in the historical ledger is zero (0)) and that had any depreciation in that month (the balance in the depreciation expense account is not zero (0)).
When you run this report in proof mode, the system:
Validates the accounts where the system will post the end-of-useful-life journal entries.
Prints the report showing the amounts to be posted in each depreciation inflation adjustments account when executed in final mode.
This report also shows the calculated results.
When you run this report in final mode, the system:
Validates the accounts where the system will post the end-of-useful-life journal entries.
Prints the report showing the amounts to be posted in the depreciation inflation adjustments accounts, such as the monetary correction account.
If there is an error, the end-of-useful-life process does not create the journal entry.
Creates a journal entry for depreciation inflation adjustment and depreciation monetary correction accounts to be considered for the calculation.
These journal entries have a document type as specified in the processing option on the Process tab. The batch type is G.
Creates records in the Journal Entry Transactions table (F0911Z1) and automatically sends the transactions to the Account Master table (F0911).
Creates a journal entry that you need to post to the JD Edwards EnterpriseOne General Accounting and JD Edwards EnterpriseOne Fixed Assets systems.
After you post the journal entry, the system displays on the Work with Cost Summary form the end of useful life value that is in the inflation adjustments ledger. You can verify how the system updated the depreciation method in the inflation adjustments ledger by reviewing the Depreciation Information form.
Run the report first in proof mode. Carefully review the report for accuracy and correct any errors.
Run the report in final mode to update the depreciation method to 00 and to validate the net book value for the inflation adjustments ledger. If the net book value for the inflation adjustments ledger is not zero (0), the system creates a journal entry that makes the depreciation inflation adjustments account balance to 0 for the net book value of the inflation adjustments ledger.