Reference: Depreciation Conventions

The depreciation convention that you select impacts:

The depreciation start date of the asset.

The amount of the depreciation expense in the first period, month, quarter, or year that you place the asset in service.

The amount of the depreciation expense in the year of disposal.

Depreciation Convention	Depreciation Start Date	Additional Considerations
Current Period	The first day of the period that you place the asset in service.	In the first period that you place the asset in service, Workday records a depreciation amount for the full period.
Current Period Pro-rata	The date that you place the asset in service.	In the first period that you place the asset in service, Workday prorates the depreciation amount to the number of days that the asset is in service.
Half Year	The middle day of the fiscal year that you place the asset in service. Example: The first day of the seventh period in a 12-period fiscal year.	In the first fiscal year that you place the asset in service, Workday records a depreciation amount for half a year.
Half Year Pro-rata	The date that you place the asset in service.	To calculate depreciation during the first fiscal year, Workday: Calculates the first year depreciation amount using the Half Year accounting convention. Distributes the first year depreciation amount across the first year periods from the date that you place the asset in service. When you dispose of an asset that hasn't reached the end of its useful life, Workday adjusts the depreciation amount of the last year to catch up the depreciation amount of the half year.
Mid-Month	The middle day of the month that you place the asset in service.	In the first month that you place the asset in service, Workday records a depreciation amount for half a month. If 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 the asset in service.	In the first quarter that you place the asset in service, Workday records a depreciation amount for half a fiscal quarter.
Modified Half-Period	When you place the asset in service in the first half of the fiscal period: the first day of the period that you place the asset in service. When you place the asset in service in the second half of the fiscal period: the first day of the period following the date that you place the asset in service.	When you place the asset in service in the first half of the period, Workday uses the Current Period convention. When you place it 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 the asset in service.