Fixed Asset

Can anyone explain to me about Initial Year Apportionment?

How does it work and what is the purpose?

Can we set up a depreciation without Initial Year Apportionment?
I've tried creating a new rule and new formula without Initial Year Apportionment but it is still there.

Please help.

In most methods, JDE calculates the annual depreciation and then apportions the annual amount to the individual periods. For example:

Asset has a cost = $6,000
Depreciation Method = 5 year Straight Line.

1st year depreciation = $6,000 / 5 = $1,200

If asset has a depreciation start date of July 1, there is only half a year left for depreciation.

The formula would look something like this.

First Month:
$6,000 / 5years = $1,200 * 50% = 600 * 16.66666% = $100 Accumulated Depreciation.

The second month would be :
$6,000 / 5years = $1,200 * 50% = 600 * 33.33333% = $200 Accumulated Depreciation.

Accum Depreciation $200 - YTD Depr $100 = $100 Current Month Depr.

If you are tring to set up a custom depreciation method, you will need to set up 12 initial year date patterns, one for each possible start month. Should look something like this:

Start
Month # Percentages

1 8.3333% For 12 Months
2 9.0909% For 11 Months
3 10.0000% For 10 Months
etc....
12 100.0000% For 1 Month

Seems more complicated than it should be, but this is how JD Edwards can determine if a month of depreciation was skipped and needs to be "caught up" in the current period.

Hope this makes sense.





Ken

XE SP 16
Win2000/Oracle 8.1.6.

<P ID="edit"><FONT SIZE=-1>Edited by ksmithcpa on 4/2/02 11:54 AM.</FONT></P>

TQ. I finally managed to figure out about the apportionment. I'm not used to thinking about it in terms of %.

I need to come to terms & accept the way JDE does the calculation.

Thanks again!