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<ManualTopic ID="/baanerp/tf/onlinemanual/000070" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Using Depreciation Frequencies</Title>
		<Keyword><Level1>Depreciation Frequencies</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Depreciation frequencies identify when depreciation must be run and recorded for assets and their related books. When depreciation is run, SSA ERP uses the frequency to determine whether the asset books are eligible for depreciation. You assign default depreciation frequencies to book types in the <Link href="/baanerp/tf/fam/tffam0100s000" role="session">FAM Parameter (tffam0100s000)</Link> session. SSA ERP applies the defaults to all the books related to an asset during asset entry. You can change the default frequency for an asset book.</Paragraph>
		<Paragraph>SSA ERP checks the frequencies each time you run depreciation. For example, you are depreciating an asset whose related book uses a quarterly frequency. SSA ERP checks to make sure you are at the end of the quarter each time you run depreciation for that asset and the related book. If you are at the end of a quarter, SSA ERP calculates depreciation for each period in that quarter and records one transaction for the total of these amounts. If you are not, depreciation does not occur.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>If you select a <Link href="/baanerp/tf/glossary/glossary#000148" role="glossary">vintage/group account</Link> for the asset, SSA ERP defaults the depreciation frequency for the <Link href="/baanerp/tf/glossary/glossary#000115" role="glossary">ADR</Link> book to the depreciation frequency for the account and you cannot change it.</Paragraph>
		</Note>
		<List><ListIntro>Depreciation frequencies are calendar-dependent. A calendar is defined in the <GUIRef href="/baanerp/tf/gld/tfgld0105m000" role="session">Periods (tfgld0105m000)</GUIRef> session. You must indicate whether you want SSA ERP to record depreciation periodically, quarterly, semiannually, or annually. You must be able to evenly divide the number of periods in the selected calendar by the recording frequency. The following restrictions apply:</ListIntro>
			<ListItem>Calendars with an odd number of periods support only periodic and annual recording frequencies.</ListItem>
			<ListItem>Calendars with an even number of periods support periodic, semiannual, and annual recording frequencies.</ListItem>
			<ListItem>Calendars with a number of periods that can be evenly divided by four support all frequencies. The correction period is not counted as a period.</ListItem>
		</List>
		<List><ListIntro>For example:</ListIntro>
			<ListItem>A 14 period calendar supports periodic, semiannual, and annual recording frequencies.</ListItem>
			<ListItem>A 13 period calendar supports only periodic and annual recording frequencies.</ListItem>
			<ListItem>A 12 period calendar supports all recording frequencies.</ListItem>
		</List>
		<Paragraph>Depreciation frequencies also indicate which periods, if any, are suspended for an asset and its related books. When a period is suspended, SSA ERP does not accumulate depreciation for any assets and their related books in that period.</Paragraph>
		<Paragraph>For example, you want an asset to depreciate in every month except June. The company that owns the asset uses a 12 period calendar that runs from January to December. You would create a depreciation frequency that uses the same 12 period calendar, select <GUIRef href="" role="manual">Periodic</GUIRef> as the recording frequency, and suspend depreciation in period 6, June.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>Assets subject to ADR and MACRS group depreciation are not subject to suspended periods when they depreciate. SSA ERP depreciates each period for these assets even if the frequency indicates that the period is suspended.</Paragraph>
		</Note>
	</GeneralSection>
</ManualTopic>
