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Administrator Guide
Last Updated: 2026-07-10
Set Up Depreciation Profiles

Set Up Depreciation Profiles

Security:
Set Up: Business Asset Accounting
 domain in the Business Asset Accounting functional area.
Depreciation profiles enable you to configure how Workday creates depreciation schedules when you place depreciable capital assets in service.
  1. Access the
    Create Depreciation Profile
     task.
  2. As you complete the task, consider:
    Option Description
    Depreciation Method
    Workday only displays the options relevant to the depreciation method that you select. See Reference: Depreciation Methods.
    Depreciation Percent
    Enter the annual depreciation percentage that Workday applies to the asset cost or net book value for these depreciation methods:
    • Declining Balance
    • Declining Balance with switch to Straight Line
    Example: For the double declining balance method, enter
    200
    .
    Depreciation Threshold
    When you select the
    Declining Balance
     method, enter a depreciation limit that is greater than zero and less than the cost of the asset. When the net book value of the asset falls under
    Depreciation Threshold
     +
    Residual Value
    , Workday fully depreciates the asset.
    Rate Schedule
    When you select the
    Rate Schedule
     Depreciation method, you can create or select a rate schedule for the depreciation profile.
    You can only use rate schedules with a depreciation convention of
    Current Period
    .
    Depreciation Rate Basis
    Select whether you want to calculate the depreciation expense by periods or by days. Example: When you select the
    Straight Line
     depreciation method:
    • With a
      Depreciation Rate Basis
       of
      Number of Days
      , the period depreciation amount varies with the number of days in each period.
    • With a
      Depreciation Rate Basis
       of
      Periods
      , the depreciation amount is the same for all the periods, with possible rounding differences.
    Useful Life (Periods)
    Enter the number of periods over which the asset is in use and depreciates. You can enter a useful life with these depreciation methods:
    • Straight Line
    • Declining Balance with switch to Straight Line
    • Sum of Years Digits
    When you select the
    Rate Schedule
     depreciation method, Workday populates this field from the rate schedule. To change the useful life on the depreciation profile, update the rate schedule.
    Place In Service Based On
    Select
    Manually or When Issued
     to place the asset in service with 1 of these tasks:
    • The
      Issue Assets
       task.
    • The
      Issue to a Worker
       task from the related actions menu on the asset.
    • The
      Place In Service
       task from the related actions menu on the asset.
    Select
    Upon Acquisition
     for Workday to place the asset in service:
    • When you register the asset manually using the
      Register Assets
       task.
    • When Workday registers assets from a service step on the
      Receipt
       and
      Supplier Invoice Event
       business processes.
    • When you register assets from a supplier contract line.
    With multibook asset accounting, Workday recommends that you use the same
    Place in Service
     date for all the depreciation profiles, preferably upon acquisition.
    Depreciation Convention
    Select a Workday-owned or a custom depreciation convention.
    The depreciation convention that you select impacts:
    • The depreciation start date of assets.
    • The depreciation start date for post-acquisition lifecycle events that use a depreciation adjustment option of
      Depreciation Convention
      .
    • The depreciation amount for the first and last periods of the asset useful life.
    In Use
    Workday selects this check box when at least 1 asset book rule uses this depreciation profile.
    Inactive Depreciation Profile
    Select this check box to prevent users from accidentally selecting this depreciation profile.
    You can't deactivate depreciation profiles that are in use.
    When you complete the
    Assign Asset Accounting Information
     business process step on assets before deactivating depreciation profiles, you can still register these assets.
  • Create at least 1 asset book rule for Workday to populate your depreciation profile when you assign accounting information to assets.
  • Run the
    Find Depreciation Profile
     report to review your depreciation profiles.
  • Access the
    Edit Depreciation Profile
     task to maintain, deactivate, or reactivate depreciation profiles.