Selecting assets for reduction depreciation

Reduction depreciation reduces the amount of ordinary depreciation by a percentage you specify, during a particular year of an asset's useful life. When a reduction depreciation is applied to an asset for a certain year, there can be no advanced depreciation for the asset in that year.

Use Fixed Asset Reduction Depreciation Selection (FDR) to determine which assets are to be included in the reduction and the percentage by which their depreciation rate is reduced. Following this selection, use Asset Reduction Depreciation Calculation (FAR) to calculate and post the reduction.

Note:  You can also set the depreciation reduction percentage manually for specific assets in Asset Records (FAS) before running the reduction depreciation.

The steps required to configure and run reduction depreciation are described in 'Setting Up the Elements of Enhanced Depreciation' in the Financials Administrator Guide.

  1. Open Fixed Asset Reduction Depreciation Selection (FDR).
  2. Specify this information:
    Asset Class From/To
    The asset class, or the range of asset classes, to be selected. Leave this blank either to select all assets, or if you want to select specific asset codes in the field below.
    Asset Code From/To
    The asset, or the range of assets, to be selected for reduction depreciation. Leave this blank to select all asset codes.
    Analysis Dimension
    An analysis dimension for which you may select a range of codes to be included. Leave this blank to select all dimensions.
    Analysis Code From/To
    The analysis code, or range of analysis codes, for the analysis dimension chosen above, to be used to select assets for reduction depreciation. Leave this blank to include all analysis codes for the dimension selected.
    Reduction Percentage
    Enter the percentage (0 to 100) by which the ordinary depreciation is to be reduced for the selected assets for the current year.
    Note:  By entering 0 (zero) in the Reduction Percentage, you can clear the % Current Year Reduction field on all of the assets selected, thus leaving that field blank in Asset Records (FAS) for those assets.
  3. Save your changes.