Updates to Depreciation Runs in Workday

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Financials

As a part of the 2023 R2 release, Workday has two new updates to how you can configure Depreciation in the Financials module.

Custom Depreciation Schedules

This update allows you to implement rate schedules with a depreciation convention of current period and a depreciation rate basis of periods.

Overview

  • Maintain depreciation schedules as period ranges.
  • Enables end users to track assets with unique depreciation schedules without needing to integrate a workaround.
  • Change rate schedules of an asset.

What do you need to do?

  • Nothing! This feature is automatically available in your Workday tenant.
  • Users that can maintain depreciation profiles can now maintain and change rate schedules for assets.

What has changed?

  • This new update allows Workday users to track assets with unique requirements without needing to institute workarounds, such as remembering to suspend an asset after a number of depreciable periods.

New Tasks

  • Adjust Asset
  • Create Rate Schedule
  • Delete Rate Schedule
  • Edit Rate Schedule
  • Maintain Asset Adjustment Reasons
  • Maintain Asset Adjustment Types

Deployment Considerations:

  • View the details of a Rate Schedule on these tasks:
  • Assign Asset Accounting Information
  • Change Accounting Information
  • Business Asset, on the Accounting and Books tabs

Rate Schedules

  • In the Create Rate Schedule task, enter a name for your rate schedule.
  • Add a line to reflect each period range for the rate schedule and enter the Depreciation percentage for that associated period. This will trigger the calculation for the periodic rate.
  • Enter Depreciable basis to calculate the Sample Depreciation Expenses for each period and enter the currency.
  • This will not save the rate schedule to the asset. A rate schedule must be linked to a Depreciation profile to properly set up Asset Book Rules to link the rate schedule and depreciation profile to the correct asset.
  • Use the Adjust Asset task to change the rate schedule on an asset. An adjustment reason is needed to proceed with the task, use Maintain Asset Adjust Reasons to create the reason and Maintain Asset Adjustment Types to properly display the reason on the Asset Adjustment. This adjustment can be restricted to a certain Asset Book and an effective date is required. A new Rate Schedule can be created off this task or select one that was previously created.

Additional Considerations

  • Rate Schedules ending in “Workday-Created” indicate a transaction on an asset was performed that modified its depreciation rate schedule, creating a new rate schedule just for this asset.
  • Delete or edit rate schedules only when the Usage Count is zero
  • Workday creates a new rate schedule when a transaction is performed on an asset that impacts the rate schedule. These rate schedules cannot be viewed, edited, or deleted; they can be modified solely by performing a transaction on the asset.
depreciation 01

Schedule Reoccurring Depreciation Runs

Workday now enables users to run depreciation automatically, decreasing the time and effort required during month-end to optimize the close process.

Overview

  • New Run Frequency Options for the Record Depreciation Amortization Task
  • Custom Reoccurrence
  • Daily Reoccurrence
  • Weekly Reoccurrence
  • Monthly Reoccurrence
  • To avoid the task to run on weekends of Holidays, use Custom Reoccurrence and schedule the task to run on any desired days for the year.
  • When using one of the new frequencies, Workday determines the accounting date for the depreciation run based on the Posting Date Option selected:
  • Using Current Period will post the depreciation expense on the last day in the period when the task runs.
  • Using Previous Period will post the depreciation expense on the last day in the period before the task runs.
  • The new frequencies do not include a preview option.

What has changed?

  • This new update allows Workday users to track assets with unique requirements without needing to institute workarounds, such as remembering to suspend an asset after a number of depreciable periods.
depreciation 02

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