Creating personal use codes

  1. Select Financials > Asset Accounting > Asset System Setup > Personal Use Codes.
  2. Click Create.
  3. Specify this information:
    Book
    Select the book that is associated with the personal use code.
    Personal Use Code
    Specify a personal use code and description.
  4. In Depreciation Options section, specify this information:
    Qualifying Business Use Percentage
    Specify a qualifying business use percent value. This field refers to the percentage of business use an asset must maintain. If the percentage drops below this limit, then the recapture, life, and method changes go into effect.
    Life
    Specify in months an asset life that is used if the business use falls below the qualifying percentage.
    Recapture Depreciation Below Qualifying Percentage
    Select this check box if the Asset Accounting recaptures depreciation when business use percentage drops below the qualifying percentage.
    Change Method Below Qualifying Percentage
    Select this check box if the Asset Accounting changes the depreciation method if the business use drops below the qualifying percentage. If you select this check box, then specify an alternative method in the Methods field.
    Optional Depreciation Method
    Select the name of an optional depreciation method. This method must be specified on Methods. If you specify a value in this field, then select the check box of Change Method Below Qualifying Percentage.
  5. In the Tax Credit Options section, specify this information:
    Recapture Tax Credit Below Qualifying Percentage
    Select this check box to recapture tax credit when business use drops below the qualifying percentage. The qualifying percentage is defined in the Qualifying Business Use Percent field.
    Tax Credit Limit
    Specify a tax credit limit amount if the business use percentage drops below the qualifying percentage.
    Recapture Tax Credit Below Prior Year Use Percentage
    Select this check box to recapture tax credit when business use drops below the previous year's business use.
    Tax Credit Limit
    Specify a tax credit limit amount if the business use percentage drops below the previous year's use.
  6. In the Annual Depreciation Limits section, specify this information:
    Allow Annual Depreciation Limit
    Select this check box if the annual depreciation limits are specified for the personal use code. If you select the check box, then specify the depreciation limits.
    Allow Post Recovery Deduction
    Select this check box the remaining book value of an asset is depreciated by the system when it is not fully depreciated over its asset life.
    Annual Depreciation Limits
    Specify up to 20 maximum allowable limits for depreciation for a recovery year. If the amount is zero, then no limit is specified for the year.
  7. Click Save.