Concept: Depreciation Adjustment Options
Depreciation adjustment options enable you to configure when to start depreciation for post-acquisition lifecycle events on depreciable capital assets. Example: Transfer assets.
Depreciation Adjustment Options
You can apply these depreciation adjustment options to post-acquisition lifecycle events:
Option | Depreciation Start Date for Post-Acquisition Lifecycle Events |
|---|---|
Depreciation Convention
| Based on the depreciation convention. |
Beginning Net Book Value
| The start of the period for the transaction effective date of the lifecycle event. |
By default, Workday only enables the
Depreciation Convention
option. You can enable the Beginning Net Book Value
option using the Edit Tenant Setup - Financials
task. See Reference: Edit Tenant Setup - Financials.Population of Depreciation Adjustment Options
You can apply different adjustment options to each lifecycle event in each asset book.
To reduce manual entry, Workday populates depreciation adjustment options on lifecycle events based on your asset accounting configuration.
You can configure depreciation adjustment options at these levels:
Configuration Level | Considerations |
|---|---|
Asset Book Rules | You can configure a depreciation adjustment option on asset book rules for Workday to populate on all asset book configurations that match the asset book rule during asset registration.
When you don’t configure an adjustment option, Workday uses the depreciation convention. Changing the resulting depreciation adjustment option on an existing asset book rule only impacts assets that you register after the change. |
Asset Book Configurations | You can override the depreciation adjustment option on asset book configurations for Workday to populate on all post-acquisition lifecycle events for an asset in a given asset book.
Changing the depreciation adjustment option on an existing asset book configuration only impacts post-acquisition lifecycle events that you perform after the change. |
Post-Acquisition Lifecycle Events | You can override the depreciation adjustment option on individual post-acquisition lifecycle events.
Workday uses the selected depreciation adjustment option in all asset books where you apply the lifecycle event. |
Business Processes
You can create business process condition rules based on the value of the
Adjustment Option
report field on business asset events. This enables you to configure Workday to send post-acquisition lifecycle events for approval when users select a specific depreciation adjustment option.Example
When you perform post-acquisition lifecycle events on assets that depreciate following the mid-month depreciation convention, you can choose to start adjusting depreciation from the:
- Middle of the month, using the depreciation convention.
- Start of the period, using the beginning net book value.