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Administrator Guide
Last Updated: 2023-06-23
Set Up Bonus Depreciation Rules

Set Up Bonus Depreciation Rules

  • Set up asset books.
  • Set up asset classes.
  • Set up asset types.
  • Security:
    Set Up: Business Asset Accounting
     domain in the Business Asset Accounting functional area.
You can set up bonus depreciation rules on your nonaccounting asset books.
  1. Access the
    Maintain Bonus Depreciation Rules
     task.
  2. As you complete the task, consider:
    Option Description
    Asset Book
    You can define bonus depreciation rules only on nonaccounting books.
    Company
    Select the company or hierarchy to which the rule applies. Leave empty for the rule to apply to assets in all your companies.
    Acquisition Date
    You can restrict the bonus depreciation rule to assets that you acquire between a
    From
     and a
    To
     date.
    When you only enter a
    From
     date, Workday evaluates all the assets with an acquisition date on or after that date.
    When you only enter a
    To
     date, Workday evaluates all the assets with an acquisition date on or before that date.
    In Service Date
    You can restrict the bonus depreciation rule to assets that you place in service between a
    From
     and a
    To
     date.
    When you only enter a
    From
     date, Workday evaluates all the assets that you placed in service on or after that date.
    When you only enter a
    To
     date, Workday evaluates all the assets that you placed in service on or before that date.
    Asset Class
    Asset Type
    Select the asset classes or types to which the bonus depreciation percentage applies. Leave empty for the rule to apply to the assets in all asset classes and asset types.
    Location
    You can only select hierarchies with at least 1 location that has asset usage. Leave empty for the rule to apply to the assets in all locations.
    Default Bonus Depreciation Percent
    The percentage of bonus depreciation that Workday applies to the assets matching the rule criteria. You can leave the percent as
    0
     when you explicitly want to set up a rule where no bonus depreciation applies.
    Minimum Days for Recapture
    This value is informational only. You can use this value:
    • In the asset disposal business process definition, in a condition rule.
    • As an indication on when you might want to recapture bonus depreciation for assets that you dispose before the minimum number of days.
    • In custom reports.
  3. (Optional) Order the rules from most to least restrictive.
  4. (Optional) Click
    Test Bonus Depreciation Rules
     to view how Workday evaluates the bonus depreciation rules on sample asset information.
When you place an asset in service, Workday evaluates the rules in the order that you define to determine the percentage of bonus depreciation. Workday stops evaluating rules on the first match. If an asset doesn't match any of your bonus depreciation rules, Workday applies a bonus depreciation of zero percent.
You can view the bonus depreciation amount on the
Depreciation Detail
 tab on the
View Business Asset
 page.