Understanding the French Derogatory Depreciation Report

The French Derogatory Depreciation program (R7412855A) calculates the difference between the French Declining Balance ledger and the French Straight Line ledger, and posts entries to the general ledger when you run the report in final mode. The French Declining Balance ledger must be associated with an alternate tax ledger, such as the D1 ledger. The French Straight Line ledger is typically associated with the AA ledger, although another ledger might be used.

The report accurately creates journal entries only when these AAIs are set up:

• FF101 - Use this AAI to specify the account to which the system records the expense amount.

  The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is positive.

• FF102 - Use this AAI to specify the account to which the system records the derogatory depreciation amount.

  This account is the offset account.

• FF103 - Use this AAI to specify the account to which the system records depreciation reversal amounts.

  The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is negative.

The French Derogatory Depreciation program calculates the difference between the French Declining Balance ledger and the French Straight Line ledger by subtracting the amount in the French Straight Line ledger from the amount in the French Declining Balance ledger. If the resulting amount is greater than 0 (zero), the report shows a debit for the depreciation expense account in the amount of the resulting amount and a credit for the derogatory depreciation account in the amount of the resulting amount. If the result of subtracting the amount in the French Straight Line ledger from the amount in the French Declining Balance ledger is less than 0 (zero), the report shows a debit for the derogatory depreciation account in the amount of the resulting amount and a credit for the depreciation reversal account in the amount of the resulting amount.

If you complete the G/L Post (R09801) processing option with a valid version of the General Ledger Post Report program (R09801), the system posts the associated journal entries when the report is run in final mode. The system also produces an additional report that shows amounts that the system posts to the accounts.

See also:

• "User-Defined Depreciation" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.