Creating insurance methods

  1. Select Financials > Asset Accounting > Asset System Setup > Depreciation and Valuation Methods > Insurance Methods.
  2. Click Create.
  3. Specify an insurance Method name and Description.
  4. On the Compute Detail tab, specify this information:
    Formula
    Select the depreciation formula that is used to calculate the insurance amount. This field is a formula that consists of numbers, dictionary items, parentheses, and mathematical operators.
    Optimization Method
    Select a insurance optimizing method. To switch this insurance method, select the check box in the Method Switch field when you specify depreciation books in Books.
    Straight Line Calculation
    Select whether the straight line calculation is Default, Original, Mixed, or Not Applicable.
  5. On the Annual Percent tab, specify an annual percentage for each year that the asset remains in service. The insurance amounts are calculated as a percentage of the asset cost.
  6. Click Save.