R11i to R12.1 Tax Book Requirement for Depreciation Method Changes MACRS HY and MACRS MQ
Last updated on SEPTEMBER 01, 2017
Applies to:Oracle Assets - Version 188.8.131.52 to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.
Depreciation Method Changes
For IRS requirements, there is a need to wait until the end of the fiscal year to see whether the assets placed in service in the last quarter exceeds 40% of the assets placed in service for the whole year.
If so, MACRS MQ applies. If not, MACRS HY applies. This results in the corporate and tax books not being in sync.
Fiscal Year is April to March
Period Mar-10 is open in the corporate and tax books, meaning periods up to Feb-10 are closed after running depreciation.
The depreciation method is changed to HY in Mar-10 for all assets purchased in current fiscal year because last quarter asset purchases are >= 40% of total yearly purchases.
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