How You Add Assets With an Annuity Depreciation Method and Interest Rate

When you add assets to a corporate book, the depreciation method and annuity interest rate defaults from the asset category. You can override the category defaults if necessary.

If you convert assets from a legacy application, you can add assets with year-to-date depreciation, depreciation reserve, year-to-date annuity interest, and life-to-date annuity interest amounts with an amortization date as of the first day of the current open period.

Add the assets to your tax book using one of these two methods:

• Run the Perform Initial Mass Copy or Perform Periodic Mass Copy process to copy the assets from the corporate book to the tax book. These processes add the assets with the depreciation method, life, and annuity interest rate from the tax book's category default rules.
• Add assets directly to the tax book.

When adding an asset with an annuity depreciation method, keep the following points in mind:

• The annuity interest rate must be a positive value.
• The annuity interest rate must be a whole number. For example:
  • For an annuity interest rate of 8 percent, enter 8 in the Edit Asset Category, Add Asset, Edit Source Line, and Change Financial Details pages, and in the Add Asset and Adjust Assets spreadsheets.
  • For file-based data import templates and Setup Data Export and Import files, enter the annuity interest rate of 8 percent as 0.08.