Enhanced Depreciation - Selecting Assets for Advanced Depreciation

It is not mandatory to use advanced depreciation, and you can decide whether or not to apply the rule for each individual year of an asset's useful life (as long as it is within the time frame defined by the Term of Years specified for each asset in Asset Records). Normally, this decision is applied to whole groups or categories of fixed assets, and you can use one of the analysis dimensions available on the Analysis tab of Asset Records (FAS) to categorize the assets into groups. If you decide not to apply the rule for a specific year for a certain group of fixed assets, the decision only affects the assets in that group for that year, which means the following year the group can be included again on the advanced depreciation calculation. However, if the advanced depreciation is not applied during a certain year, the corresponding amount is not recovered in the following years.

In Asset Records (FAS), the Apply Current Year check box for each asset (on each currency Value tab) displays whether or not the asset is due to be included in the advanced depreciation calculation for the current year. By default it is unchecked for all assets. If you want to include assets in advanced depreciation, you can either check the check box for individual assets, or you can run Asset Advanced Depreciation Selection (FDA) to select many assets to be included in the current year's calculation. This checks the Apply Current Year check boxes for all of the assets you select that are within the time frame defined by the Apply From and Term of Years options in Asset Records (FAS). Asset Advanced Depreciation Selection (FDA) also allows you to select assets by an analysis code, for example, the asset type or category.

Advanced Depreciation Selection must be run before Calculate Advanced Depreciation in any year, as you need to ensure the appropriate assets have their Apply Current Year check box checked before calculating advanced depreciation. See Setting Up the Elements of Enhanced Depreciation \ Running the Enhanced Depreciation Elements at Year End.