MANUALS > Settings > Settings Transaction Code > P/N Category > Fixed Asset Depreciation, via P/N Category

Fixed Asset Depreciation, via P/N Category

In order for Fixed Assets to be depreciated monthly, parts that will link to Fixed Asset records must be configured to depreciate. The P/N Category contains the primary configuration options. These options are as follows.

Note: Parts can also be configured for depreciation via the P/N Master, Costing tab.

The following information/options are available in this window:
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Depreciation Code

The Fixed Asset Depreciation transaction code linked to this P/N Category or P/N record (via P/N Master, Costing tab). When a Depreciation Code is entered, the Default Month Depreciation and Residual Value % fields will be overridden by that code's configuration. The Depreciation Code also contains the Start Depreciation Date field (which is used as part of the Accelerated depreciation method). This code can be defaulted for parts based on the P/N Category or manually overridden at the part level in the P/N Master, Costing Tab. For more information refer to the F/A Depreciation Code transaction code.

Default Month Depreciation

The number of months required for the Fixed Asset value of these parts to be depreciated over (i.e., five year depreciation is 60 months). This number can be defaulted for parts based on the P/N Category or F/A Depreciation Code, or it can be overridden manually at the part level in the P/N Master, Costing Tab.

Residual Value %

The residual value of the part that remains after the depreciated month has completed (expressed as a percentage of the actual cost of the Fixed Asset). This percentage can be defaulted for parts based on the P/N Category or F/A Depreciation Code, or it can be or overridden manually at the part level in the P/N Master, Costing Tab.

Start Depreciation Date

The specific date that the Fixed Asset will start depreciating from. This field is only available from the Depreciation Code and is typically used for the accelerated depreciation method. The straight line depreciation method would depreciate from the fixed asset's creation date (i.e., the part's purchase date or initial load date), and would therefore not rely on this start date. For more information refer to Accelerated vs Straight Line Depreciation.

Depreciation G/L

Depreciation General Ledger account number. When Fixed Asset Depreciation is run, the depreciation amount will be credited to the account specified here. The Depreciation G/L field can only be configured for parts through the P/N Category transaction code.

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For more information on F/A depreciation options and configuration, refer to Setting Default Depreciation for Parts via the G/L Interface Training Manual.