Setting Up the Asset Register for Enhanced Depreciation

On the Ledger Setup (LES) General tab, check the following check boxes:

Full Year Deprctn in 1st Year
Apply Advanced Depreciation.

In Chart of Accounts (COA) create the profit and loss account and the balance sheet account to be used for Advanced Depreciation postings.

In Asset Records (FAS) General tab, for every fixed asset subject to advance depreciation, specify the advanced depreciation accounts, as created in step 2. Additionally on this tab, verify that the End Period option is blank.

In Asset Records (FAS) Value 1 Depreciation tab, ensure that the Depreciation Method is Straight Line and that there is a value in the Percentage field. Complete the Advanced Depreciation Settings and Reduction Depreciation Settings as necessary for Base currency and any other currency required.

For example, under Italian depreciation rules you might set the following options:

Apply From: enter the year in which the depreciation starts for this asset.
Term of Years: enter 3 for new assets or 1 for assets bought used.
Factor: enter 1.
% First Year Reduction: enter 50.

If your business unit requires depreciation to be posted also in currency values 2 and 3, complete the Asset Records (FAS) Value 2 Depreciation and Value 3 Depreciation tabs following the same guidelines as step 4 above.