Step 26 - Define Your Prorate and Retirement Conventions

Use the Prorate Conventions window to set up your prorate and retirement conventions. Prorate and retirement conventions determine how much depreciation expense to take in the first and last year of life, based on when you place the asset in service. Oracle Assets lets you set up as many prorate and retirement conventions as you need.

Prorate Conventions	Determines how much depreciation expense to take in the first year of life.
Retirement Conventions	If you do business in a country that requires you to use a different prorate convention for retirements than for additions, set up retirement conventions to determine how much depreciation to take in the last year of life, based on the retirement date.

You must set up your prorate conventions for the entire year. When you run the depreciation program for the last period in your fiscal year, Oracle Assets automatically generates the dates for your next fiscal year. See: Specifying Dates for Prorate Conventions.