Reference: Depreciation Conventions

The depreciation convention on assets impacts the:

Depreciation start date of assets.

Depreciation start date of post-acquisition lifecycle events with a depreciation adjustment option of Depreciation Convention
.

Amount for the depreciation expense in the first period, month, quarter, or year that you place assets in service.

Amount for the depreciation expense in the year of disposal.

Workday-Owned Depreciation Conventions

Workday delivers these depreciation conventions, which meet common tax and reporting requirements:

Depreciation Convention	Depreciation Start Date	Additional Considerations
Current Period	The first day of the period that you place assets in service.	In the first period that you place assets in service, Workday records a depreciation amount for the full period.
Current Period Pro-rata	The day that you place assets in service.	In the first period that you place assets in service, Workday prorates the depreciation amount to the number of days that assets are in service.
Half Year	The middle day of the fiscal year that you place assets in service. Example: The first day of the seventh period in a 12-period fiscal year.	In the first fiscal year that you place assets in service, Workday records a depreciation amount for half a year. Adjustments and cost activities are effective as of the middle day of the fiscal year. Example: July 1st for calendar years.
Half Year Pro-rata	The day that you place assets in service.	To calculate depreciation during the first fiscal year, Workday first calculates the first year depreciation amount using the Half Year accounting convention. Then, Workday distributes the first year depreciation amount across the first year periods from the date that you place assets in service. When you dispose of an asset that still has useful life left, Workday adjusts the depreciation amount of the last year to catch up the depreciation amount of the half year. Adjustment and cost activities after acquisition follow the current period convention.
Mid-Month	The middle day of the month that you place assets in service.	In the first month that you place assets in service, Workday records a depreciation amount for half a month. When the Depreciation Rate Basis is Period , the depreciation amount for the first and last periods is half the regular period amount.
Mid-Quarter	The middle day of the fiscal quarter that you place assets in service.	In the first quarter that you place assets in service, Workday records a depreciation amount for half a fiscal quarter.
Modified Half-Period	For assets that you place in service in the first half of the fiscal period: the first day of the period that you place assets in service. For assets that you place in service in the second half: the first day of the period following the date that you place assets in service.	For assets that you place in service in the first half of the period, Workday uses the Current Period convention. For assets that you place in service in the second half, Workday uses the Next Period convention.
Next Period	The first day of the period following the date that you place assets in service.

Custom Depreciation Conventions

To view custom depreciation conventions that you set up when Workday-owned depreciation conventions don't fit your requirements, run the

View Custom Depreciation Conventions

report.