How to Setup the Enhancement to Bonus Depreciation Calculation to Claim Investment Allowance Deduction as Bonus Depreciation? (Doc ID 2589590.1)

Last updated on APRIL 04, 2023

Applies to:

Goal

Governments around the world provides investment allowance deductions to encourage entrepreneurship and expedite migration to latest energy efficient plant and machineries. This allows businesses to recover the cost of capital acquisitions more quickly and stimulates economic activity.
An enhancement to bonus depreciation has been brought in Oracle Fusion Fixed Assets as of version 13.19B, which allows:
1. Immediate deduction for a specified percentage of the amount invested in acquisition and modernization of plant and machinery as bonus depreciation
2. Deducted bonus depreciation amount from depreciable basis of the asset and depreciate the remaining amount
3. Reverse the bonus depreciation deduction claimed earlier if asset is not used for a specified minimum period

How to setup the enhancement to bonus depreciation?

Solution

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