Calculating depreciation for listed assets

Under the "Depreciation Limits" tab for the Personal Use code annual depreciation limits can be specified for an asset.

If the Depreciation Limit for a Personal Use code is used as the asset's annual depreciation for any of the years that an asset is in service, the asset's basis will not be fully depreciated by the end of the asset's standard life. In this case, you can give the asset a new life span (called a "recovery period"). The recovery period will allow the asset to continue depreciating until the asset's basis reaches zero.

  1. The listed asset's annual depreciation is calculated twice:

    • Once using the asset's designated depreciation calculation method

    • Once using the defined depreciation limit

  2. The Asset Management application chooses the lower of these two annual depreciation values as the annual depreciation for the listed asset.