You can define corporate, tax, and budget depreciation books. You must set up your depreciation books before you can add assets to them. You can set up multiple corporate books that create journal entries for different general ledger sets of books, or to the same set of books. In either case, you must both run depreciation and create journal entries for each depreciation book. For each corporate book, you can set up multiple tax and budget books that are associated with it.
To define a depreciation book:
Open the Book Controls window. Enter the name of the book you want to define.
The book name cannot contain any special characters, and must not begin with a number.
Suggestion: The name you enter appears in List of Values windows which allow no more than 12 spaces. You may want to limit your name to 12 characters.
Entering Calendar Information for a Book
1. In the Book Controls window, choose the Calendar tabbed region.
2. Optionally enter a disable date for the depreciation book.
3. Choose whether to Allow Purge for the book.
4. Enter the general ledger set of books for which you want to create journal entries. Allow GL Posting if you want to create journal entries for this book. You cannot allow general ledger posting for your budget books.
Your tax book must have the same account structure, general ledger calendar, and functional currency as the associated corporate book. If you want to create journal entries from your tax book, you must enter a different set of books for your tax book and the associated corporate book. You can then Allow G/L Posting.
5. Enter the name of the Depreciation Calendar you want to use for this book.
The depreciation calendar determines the number of accounting periods in your fiscal year.
The depreciation program uses the depreciation calendar and the Divide Depreciation flag (located on the Book Controls form) to determine what fraction of the annual depreciation expense to take each period. For example, if you have a quarterly depreciation calendar, Oracle Assets calculates one-fourth of the annual depreciation each time you run depreciation.
6. Enter the name of the Prorate Calendar that you want to use for this book.
The prorate calendar determines what rate Oracle Assets uses to calculate annual depreciation by mapping each date to a prorate period, which corresponds to a set of rates in the rate table.
Use the prorate calendar with the smallest period size or resolution you need for determining your depreciation rate. For example, you may want to use a monthly prorate calendar in a tax book that uses a quarterly depreciation calendar to allow finer control of the annual depreciation amount for some monthly prorate/method combinations.
7. Enter the current open period name for this book.
Attention: You must set up the depreciation calendar for at least one period before the current period.
8. Enter the method for dividing the annual depreciation amount over the periods in your fiscal year for this book.
- Choose Evenly to divide depreciation evenly to each period
- Choose By Days to divide it proportionally based on the number of days in each period
9. Choose whether to depreciate assets in this book that are retired in their first year of life.
10. Enter the date on which you last calculated depreciation for this book. Oracle Assets updates this date when you run depreciation.