Understanding Depreciation for Assets Acquired on or Before March 31, 2007
The Japanese government changed the rules under which you depreciate some assets. Assets that you acquired on or before March 31, 2007 that have depreciated less than a certain percentage of their value will continue to use the existing depreciation rules. Assets that you acquired on or before March 31, 2007 that have depreciated so that their depreciable balance is five percent or less than the asset acquisition cost can be converted to a new depreciation method and depreciated a further amount.
You run the Assets acquired on or before March 31 - 2007 program to change the depreciation schedule. When you run the Assets acquired on or before March 31 - 2007 program, the system selects the records in the Asset Master File table (F1201) to process using this selection criteria:
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Date of asset acquisition.
The asset must have been acquired on or before March 31, 2007. Data selection in the ZJDE0001 version of the Assets acquired on or before March 31 - 2007 program has this value set. You should not change this value, and should use the identical value in any versions that you create.
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Disposal date.
The asset is not selected for processing if a disposal date exists for the asset.
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Asset not previously processed.
The asset must not be marked as previously processed, as the system processes a record only once. The information about the processed status is stored in an asset master category code that you specify in the processing options.
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Asset depreciable balance is at or below the percentage that you specify in a processing option.
For example, if you specify 10 in the Threshold % processing option, the system selects assets that have depreciated 90 percent or more.
When you run the program in final mode, the system validates certain conditions and updates tables with the new asset data. The conditions that the system validates are:
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The year that you entered in the Year processing option is the current year.
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The values for these elements exist in the Depreciation Rules table (F12851) and are a valid combination:
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Depreciation method
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Computation method
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Life months
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Initial term apportionment code
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When you run the program in final mode, the system updates these fields with the data that you specify in the processing options:
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Depreciation method field in the Asset Account Balance table (F1202).
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Computation method field in the F1202 table.
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Depreciation life month field in the F1202 table.
You can specify the life month in a processing option, or set up life months in the Setup for Life Month program (P75J503). If you do not specify a new life month in either the processing option or the Setup for Life Month program, the system does not change the life month.
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Initial term apportionment code in the F1202 table.
Blank is a valid value for the initial term apportionment code. If you leave the processing option blank, the system updates the table with a value of blank.
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The category code that you specify in the processing options as the category code to use to show that a record was previously processed.