Creating depreciation rate

This page allows you to create the depreciation rate for the asset. You can define various depreciation rates under one ID and provide an effective date for it. You can specify a unique ID as depreciation rate ID and provide a description to it for an asset class. You can define a various rates with the effective period of validity. The system updates the status of the depreciation rate to “Active” on creation. The system also updates the login ID of the user to the created by and the system date to the created date.

Select the “Create Rate” link at the bottom of the “Create Depreciation Rule” page.

The “Create Depreciation Rate” page appears.

The system displays the following field:

Status	The status of the depreciation rate. The various statuses of the depreciation rate are
	Active – Indicates that the depreciation ID is just been created.
	Inactive – When the depreciation ID is inactivated, the system updates the status of the depreciation ID to “Inactive”. The depreciation ID can be inactivated in the “Activate / Inactivate Depreciation Setup” activity of this business component.

Enter the following fields in the group box:

Asset Class Code	Use the drop-down list box to select the code identifying the asset class. The system loads all the asset class defined in the “Create Asset Class” activity of the “Asset Type Definition” business component, for selection. The system displays the first asset class by default on launch of the page.
Depreciation Rate Id	The unique ID identifying the depreciation rate (Alphanumeric, 20). Mandatory.
	Help facility available.
Rate Id Description	The textual description pertaining to the depreciation rate ID (Alphanumeric, 100). Mandatory.

Enter the following fields in the “Depreciation Rate Details” multiline:

Depreciation Rate	The unique depreciation rate defined for the depreciation rate ID (Decimal). The rate must be greater than zero and less than 100.
Effective From Date	The date from which the depreciation rate is effective for the period (Date Format). Mandatory. The date entered here must be later than the date on which the Fixed Asset was installed.

Note: The effective date in the succeeding row must be later than the date specified in the previous row. For example, if the effective date in the row 1 is March 1^st 2002, then the effective date in the 2^nd row must be later than the date specified in the row 1.

Atleast one rate must be defined for the rate ID.

The system displays the following field:

Expiration Date

The date till which the depreciation rate is effective. This field is calculated by the system.

Expiration Date computation

If the effective date in Row 2 is greater than effective date in the Row 1, then the expiration date in Row 1 is (Effective date in Row 2 – 1).
If the effective date in Row 2 is equal to the effective date in the Row 1, then the expirationg date Row 1 = expiration date in Row 1.

Creating depreciation rate

Follow the below example in defining the depreciation rates

Depreciation Rate	Effective Rate From	Expiration Rate
10	1-1-2000	31-3-2000
12	1-4-2000	30-06-2000
10	1-7-2000	30-09-2000
15	1-10-2000

Click the “Create Rate” pushbutton to create the depreciation rate.

The system updates the status of the depreciation rate to “Active”.

The system updates the login ID of the user to the created by and the system date to the created date.

The system displays the following fields:

Created By	The login ID of the user who created the depreciation rate.
Created Date	The date on which the depreciation rate was created.

To proceed, carry out the following

Select the “Function Defaults” link at the bottom of the page to view the function defaults.