Asset Class Depreciation Rates (AM06.4)
Use Asset Class Depreciation Rates (AM06.4) to define the depreciation rates associated with specific asset classes, as dictated by each local Public Utility Commission (PUC).
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Each asset class, sub-class, or jurisdiction must map to a unique asset account, to which a specific rate and depreciation calculation can be applied and to unique depreciation expense and accumulated depreciation accounts where the depreciation is stored. In addition, you may need to track each asset class, sub-classification, or jurisdiction separately as well as in groupings. Depending on your needs, you can define asset class depreciation rates as follows:
- On this form, you can define rates at the type or type and subtype level. With this method, you define an asset class as a type, and any sub-classifications as a subtype. You can define a separate rate for each sub-class or jurisdiction and each type and subtype combination must be defined with a unique asset, accumulated depreciation, and depreciation expense account. You can report on each type subtype separately, or group the report by type. If you have many sub-classes and jurisdictions, this strategy can be quite cumbersome to set up.
- Another strategy is to use a single asset type, and therefore a single set of asset and depreciation accounts across a company (possibly, across several companies), and define a unique depreciation rate for each accounting unit. This strategy requires you to set up an accounting unit for each jurisdiction or sub-class you want to track, but it is still less cumbersome to implement than the subtype method, and gives you more flexibility in terms of reporting, since you can create accounting unit groups and accounting unit lists to report on.
To define depreciation rates at the accounting unit level, click the Detail button to open Asset Class Depreciation Rate Detail (AM06.5).