Part 32 book

A Part 32 book is a book defined to calculate depreciation on an asset class rather than an individual asset to satisfy the requirements of the "Part 32 - Uniform System of Accounts of Telecommunication Companies." A Part 32 book can also be called an asset class book or an account book.

An asset class is a group of assets that meet the definition of a class according to the Part 32 regulations. For example, "Buried Cable" is an asset class for a telecommunication company.

Each asset class is depreciated as a group and must be assigned a unique asset account, defined in an asset type that is dedicated to the asset class. Each asset in the class must be associated with the same Part 32 book.

A Part 32 book must be defined with a "Class Level" depreciation type and be associated with a compute statement that calculates the average asset account balance. A compute statement is an arithmetic equation consisting of data dictionary items, operation symbols, and numbers. You define compute statements in the Lawson® Report Writer application.

Depreciation type

The book depreciation type specifies whether asset depreciation is to be calculated individually at the asset level, or if it is to be calculated for a whole class of assets at the account level.

All assets associated with a class-level book must also be associated with an asset account used solely by the asset class.

How does a Part 32 book differ from a regular book?

Part 32 books have these characteristics:

  • Part 32 books can be posting or non-posting books defined with a Class-Level depreciation type.

  • Part 32 assets that are added using a Part 32 book must belong to an asset class. All assets that belong to a class must be associated with the same Part 32 book.

  • A separate General Ledger asset account must be assigned to each asset class to ensure the integrity of the depreciation calculations. You can use the same accumulated depreciation and depreciation expense accounts for more than one asset class.

  • The Asset Management application has access to the General Ledger asset account balances whether the Part 32 book is a posting book, provided at least one of the books assigned to the assets in the class is a posting book.

  • The depreciation basis for a class or subclass of assets assigned to a Part 32 book is the average asset account balance for that asset class. You must define a compute statement in Lawson® Report Writer to calculate the account balance and assign the compute statement to the Part 32 book. A sample formula to calculate the balance could be:

    (beginning of month balance + end of month balance) / 2

  • The depreciation amount for a class of assets assigned to a Part 32 book is calculated by multiplying the account balance by a rate provided for the asset class by the state Public Service Commission. You must specify this rate for each asset class.

  • A Part 32 book does not use a depreciation convention, a depreciation method, asset life, or remaining asset life.

  • An asset can be assigned to a Part 32 book and to a non-Part 32 book to track multiple depreciation methods concurrently, but only one type of depreciation (asset-level or class-level) can be posted to the General Ledger application.

Because the depreciation basis for Part 32 books is the General Ledger asset account balances, Part 32 book depreciation calculation for a company must be interfaces with the company's General Ledger calendar as follows:

  • The Asset Management book calendar must match the General Ledger company calendar.

  • Before you perform calculation depreciation for Part 32 books, run Journal Posting (GL190) to update the General Ledger asset accounts.