Asset Class Depreciation Rate Detail (AM06.5)

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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 calculations 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:

• You can use Asset Class Depreciation Rates (AM06.4) to 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-classification 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-classifications, this strategy can be quite cumbersome to set up.
• You can use this form, Asset Class Depreciation Rate Detail (AM06.5), to apply 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.