| Using Depreciation Frequencies |  |
| Depreciation frequencies identify when depreciation must be run and recorded for assets and their related books. When depreciation is run, ERP LN uses the frequency to determine whether the asset books are eligible for depreciation. You assign default depreciation frequencies to book types in the FAM Parameter (tffam0100s000) session. ERP LN applies the defaults to all the books related to an asset during asset entry. You can change the default frequency for an asset book. ERP LN checks the frequencies each time you run depreciation. For example, you are depreciating an asset whose related book uses a quarterly frequency. ERP LN 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, ERP LN 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. Note If you select a vintage/group account for the asset, ERP LN defaults the depreciation frequency for the ADR book to the depreciation frequency for the account and you cannot change it. Depreciation frequencies are calendar-dependent. A calendar is defined in the Periods (tfgld0105m000) session. You must indicate whether you want ERP LN 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: Calendars with an odd number of periods support only periodic and annual recording frequencies. Calendars with an even number of periods support periodic, semiannual, and annual recording frequencies. 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. For example: A 14 period calendar supports periodic, semiannual, and annual recording frequencies. A 13 period calendar supports only periodic and annual recording frequencies. A 12 period calendar supports all recording frequencies. Depreciation frequencies also indicate which periods, if any, are suspended for an asset and its related books. When a period is suspended, ERP LN does not accumulate depreciation for any assets and their related books in that period. 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 Periodic as the recording frequency, and suspend depreciation in period 6, June. Note Assets subject to ADR and MACRS group depreciation are not subject to suspended periods when they depreciate. ERP LN depreciates each period for these assets even if the frequency indicates that the period is suspended. |