Creating Depreciation Books
To create a depreciation book:
- Click New or New Depreciation Book on the Depreciation Books tab.
- Select the type of depreciation book and level to which it is to be applied using the Record Type of new record drop-down list. See Book Types.
- Click Continue.
- Enter the name of the depreciation book.
- Depending on the level of book you selected, enter a Fixed Asset, Asset Group or Asset Sub-Group to which the depreciation book is to belong.
- The fields that you need to complete vary depending on the book type.
- For an Accounting, Tax or Custom depreciation book, complete the relevant fields in the Depreciation Schedule section and save your changes, then create an applied depreciation method to calculate the amounts in each depreciation schedule. See Applying a Depreciation Method for more information.
- For a MACRS tax book, complete the relevant fields in the Deductions & Allowances section and the MACRS Depreciation section then save your changes. You do not need to create an applied depreciation method for a MACRS tax book because all the options for calculating MACRS tax depreciation are defined on the book itself. See About MACRS Depreciation for more information.
When you create a depreciation book at asset group or sub-group level, it will be copied to any fixed assets added to that group or sub-group provided that the Inherit Values from Parent field in the Fixed Asset Management Settings custom setting is enabled. If you later edit the depreciation book at group or sub-group level, you can choose to push the changes down to related assets so that they are updated with the latest changes. See Grouping Assets for more information.