Set Up Accelerated Depreciation

To use the accelerated depreciation calculation, you must set up the following depreciation books for fixed assets:

• The accounting depreciation book (integrated with the general ledger).
• The tax depreciation book (not integrated with the general ledger).

Note

When you post an acquisition, depreciation, or disposal for the accounting depreciation book, the transaction is duplicated and posted in the tax depreciation book when the fixed asset journal is posted.

To set up the accounting depreciation book

1. Choose the icon, enter Depreciation Books, and then choose the relevant link.

2. On the Depreciation Book List page, choose ¨the New action.

3. On the General FastTab, fill in the required fields as described in the following table.

   Field	Description
   Code	The unique identification code for the accounting depreciation book. You can enter a maximum of 10 alphanumeric characters.
   Description	The depreciation book description.

   Important

   Leave the Derogatory Calculation field blank.

4. On the Integration FastTab, select the Derogatory check box to integrate accelerated depreciation with the general ledger.

   For more information, see Set Up Fixed Asset Depreciation.

5. Choose the OK button.

To set up the tax depreciation book

1. Choose the icon, enter Depreciation Books, and then choose the relevant link.

2. On the Depreciation Book List page, choose the New action.

3. On the General FastTab, fill in the required fields as described in the following table.

   Field	Description
   Code	The unique identification code for the tax depreciation book. You can enter a maximum of 10 alphanumeric characters.
   Description	The tax depreciation book description.

4. In the Derogatory Calculation field, select the accounting depreciation book code to indicate that this is a tax depreciation book to calculate derogatory depreciation.

   For more information, see Set Up Fixed Asset Depreciation.

5. Choose the OK button.

The Used with Derogatory Book field in the accounting depreciation book is updated with the tax depreciation book code.

See Also

Accelerated Depreciation
Calculate Accelerated Depreciation
Set Up Fixed Asset Depreciation

Note

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