Creating asset guideline class regulations

  1. Select Asset Accounting > Asset System Setup > Asset Guideline Class Regulations .
  2. Click Create.
  3. Specify this information:
    Finance Enterprise Group
    This is the default value for the actor for the actor context.
    Asset Guideline Class
    Specify the name of the guideline class the records are valid for. The asset guideline class and the book regulation are used as default values.
    Book Regulation
    Specify the book regulation. The value in this field is related to the record of a book having a common default regulation.
    Active
    Select an asset guideline for new assets.
    Note: There is an active flag on the Asset book. This field does not get passed the asset book to make that record inactive. The Active field restricts the ability to use the active guideline class.
    Effective Date
    The effective date is used to identify the valid set of parameters using the asset book in service date. When an asset is created, the first active Asset Guideline Class Regulation having an effective date prior to the in service date is selected. The defaults from that record are then assigned to the asset book.
    Life
    Specify the asset recovery period.
    Method
    Specify the depreciation method.
    Convention
    Specify the depreciation convention.
    Classification of Property
    Select the classification of the property.
    Depreciable Intangible
    Select if an asset is intangible and depreciable.
    Personal Use Code
    Specify the personal use code. This includes a tax limit table.
    Cost Recovery System
    Select ACRS or MACRS.
    Property Type
    Select 1245 or 1250. This will indicate that the asset was purchased as a section.
    Business Percent
    Specify the assets percent of use that is business related. This field is used to identify the bonus amount that is assigned to the asset book by multiplying this percent to the asset cost.
    Asset Tax Credit Table
    Specify the tax credit table.
    Qualified Improvement
    Select if the property is a qualified improvement, a leasehold improvement, or not a leasehold improvement.
    First Year Expense Percent
    Specify the amount to expense in the first year. This percent will be multiplied by the Asset Cost to identify the First Year Expense Amount.
    Salvage Percent
    Specify the percent of the asset cost that is identified as salvage value.
    Listed
    Select this option if the asset is listed.
    Indian Reservation
    Select this option to indicate that the asset is located within the boundaries of an Indian reservation.
    Farming
    Select this option if the asset qualifies for special tax treatment that is provided for agricultural applications.
    Foreign Property
    Select this option if the property is located outside of the US.
    Low Income Housing
    Select this option if this asset qualifies for low income housing.
    Section 179
    Select whether this asset qualifies for Section 179.
    Non Conforming
    Select this check box if the assets that are assigned values are inconsistent with regulatory requirements.
    Mineral Reserves
    Select this check box if the assets which qualify for special treatment related to the mining industry are indicated.
    Transitional Rule Flag
    This field is used to identify assets that are migrated from a legacy system because of an acquisition and may require special consideration.
    Used
    Select this check box if the asset was purchased used. This field is available on the Asset. The Asset field is also the default value of the asset book field. If the Asset field is not filled the Asset Guideline class is, the specified value will be assigned to the asset book.
  4. Click Save.
    Note: You can replicate an existing asset guideline class and assign a different name and a required variation of the defaults. There may be a change in the required life or method. Replicating and assisting records can assign a new effected date that correlates with the date that the new rule takes effect.