Setting Up Depreciation for Russia

You use the JD Edwards EnterpriseOne Fixed Assets system to set up depreciation for Russia. A Russian-specific depreciation method is provided, along with two Russian-specific formulas.

You must run the depreciation calculations for fixed assets on a monthly basis. Depreciation in Russia is calculated by dividing the net book value by the actual remaining asset life periods.

If you post additional costs to a fixed asset, you must add the additional cost to the original cost, subtract the accumulated depreciation, and then divide that sum by the remaining life of the asset. For example, if the original cost of the asset is 120,000 euros and the asset life is 12 months, the first month's depreciation is 10,000 euros. If you post an additional cost of 50,000 euros to the fixed asset during the second month, the calculation for depreciation would be (120,000 + 50,000 - 10,000) / 11 = 14,545.56.

Depreciation is calculated by using this formula:

(Original Cost + Additional Cost + Accumulated Depreciation - Salvage Value) divided by Actual Remaining Asset Life Periods

To set up depreciation for Russia, complete these steps:

1. Add RU (Russian Depreciation Method - 74R) to the Depreciation Method (12/DM) UDC table.

2. Use the Depreciation Formula Revisions program (P12853) to add the basis formula, RU1: (Basis [Cst-Svg] -74R). The formula is: 01+22+02-07.

3. Use the Depreciation Formula Revision program to add the depreciation formula, RU2: (SL [Period] - 74R). The formula is: 10/03.

4. Use the Depreciation Rules Revision program (P12851) to create a new depreciation rule for each Asset Life period that you define. Enter a Computation Direction of P and enter the Asset Life in periods.

5. Use the Depreciation Default Coding program (P12002) to add codes for each major accounting class.

See also:

• "Setting Up Depreciation Rules" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

• "Setting Up Depreciation Default Values" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

• "Setting Up Depreciation Formulas" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

• "Verifying Depreciation Information" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

• "Updating Global Depreciation Rules" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

• "Setting Up Depreciation Spread Patterns" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.