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

Set Up Depreciation Profiles

Security:
Set Up: Business Asset Accounting
 domain in the Business Asset Accounting functional area.
You can set up depreciation profiles 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
    Depending on the depreciation method that you select, Workday prompts you for additional parameters. 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.
    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
      Periods
      , the depreciation amount is the same for all the periods, with possible rounding differences.
    • With a
      Depreciation Rate Basis
       of
      Number of Days
      , the period depreciation amount varies with the number of days in each period.
    Useful Life (Periods)
    Enter the number of periods over which the asset will be in use and depreciate. You can enter a useful life with these depreciation methods:
    • Straight Line
    • Declining Balance with Switch to Straight Line
    • Sum of Years Digits
    Place In Service
    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.
    When you have multibook asset accounting enabled, Workday recommends that you use the same
    Place in Service
     date for all the depreciation profiles, preferably upon acquisition.
    Depreciation Convention
    The
    Depreciation Convention
     that you select impacts:
    • The depreciation start date.
    • 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 select this check box when the depreciation profile is in use.
    You can register an asset with an inactive depreciation profile as long as you've completed the
    Assign Asset Accounting Information
     business process step.
  • 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.