Creating a depreciation method

  1. Select Financials > Asset Accounting > Asset System Setup > Depreciation and Valuation Methods > Depreciation Methods.
  2. Click Create.
  3. Specify a depreciation Method name and Description.
  4. On the Compute Detail tab, specify this information:
    Formula
    Select the depreciation formula to calculate the depreciation amount. This field is a formula that contains numbers, dictionary items, parentheses, and mathematical operators.
    Optimization Method
    Select a depreciation optimizing method. To switch this depreciation 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 the annual percentages for each year that the asset remains in service. The depreciation amounts are calculated as a percentage of the asset cost.
  6. Click Save.