Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-07-10
Create Custom Depreciation Conventions

Create Custom Depreciation Conventions

Security:
Set Up: Business Asset Accounting
 domain in the Business Asset Accounting functional area.
You can create custom non-pro rata depreciation conventions to meet local tax and reporting requirements that Workday-owned conventions don't support.
Workday doesn’t prevent you from configuring pro rata depreciation conventions, but we recommend that you test them thoroughly to ensure that they meet your reporting requirements. Using custom pro rata depreciation conventions might produce unexpected periodic depreciation amounts without impacting the total depreciation amount.
  1. Access the
    Create Custom Depreciation Convention
     task.
  2. Complete the header:
    Option Description
    Inactive
    Select this check box to prevent users from selecting the depreciation convention on additional depreciation profiles or assets.
    Inactivating a depreciation convention doesn't impact assets that already use it.
    To inactivate custom depreciation conventions, you must first remove them from all depreciation profiles that use them. You can use the
    View Custom Depreciation Conventions
     report to identify depreciation profiles to update.
    Usage Count
    The number of asset book configurations that use the custom depreciation convention.
  3. Add custom depreciation convention lines for each eligible depreciation start date in a fiscal year:
    Option Description
    Placed in Service From
    Placed in Service To
    Set up date ranges that cover a consecutive 12-month period with no overlaps or gaps. You can start on any day and month to accommodate your fiscal year.
    You can use any year of your choosing, as Workday automatically:
    • Applies calculations to other fiscal years using the days and months that you select.
    • Adjusts calculations for leap years.
    Example: When you create a depreciation convention using FY2024, you can use the same depreciation convention on any other fiscal year.
    Resulting Depreciation Start Date
    Enter the depreciation start date for assets that you place in service during the corresponding date range.
    The resulting depreciation start date must be on or after the start of the date range, but you can select a date that's after the date range. Example: Next-Month depreciation convention.
You can use the custom depreciation convention in depreciation profiles.
For a fiscal year that starts on January 1, you can create a full-year custom depreciation convention with a single depreciation convention line:
Placed in Service From
Placed in Service To
Resulting Depreciation Start Date
2024-01-01
2024-12-31
2024-01-01
You can also create a modified half-year depreciation convention with these lines:
Placed in Service From
Placed in Service To
Resulting Depreciation Start Date
2024-01-01
2024-06-30
2024-01-01
2024-07-01
2024-12-31
2024-07-01
You can run the
View Custom Depreciation Conventions
 report to:
  • Review which depreciation profiles use custom depreciation conventions.
  • Edit, preview, or delete depreciation conventions from their related actions menu.
After you assign a custom depreciation convention to an asset, either through asset book rules or manually:
  • Workday increments the usage count for the depreciation convention.
  • You can no longer delete the depreciation convention.
  • When you edit the depreciation convention, you can only change its name and inactivate it.