Depreciation allocation

A depreciation allocation lets you parse depreciation allocation to multiple accounting units.

A depreciation allocation is associated with an asset type and requires both the company's system options and the type to be flagged to allow allocation.

When you associate a new asset with a type defined to use depreciation allocation, the depreciation expense for that asset is distributed among the various accounting units that make up the allocation, according to the percentage allocated to each accounting unit. The distribution happens when you run Depreciation Calculation and Listing (AM180) and Period Closing (AM190). The depreciation is posted to the depreciation expense account defined for the asset type.

If you define an asset to use depreciation allocation, you must assign to the asset an expense accounting unit that is included in the depreciation allocation. If the depreciation expense accounting unit is defined in the accounting unit group used by the asset, the depreciation allocation must include that accounting unit. If no depreciation expense accounting unit is identified on the accounting unit group, or if the asset does not use an accounting unit group, the default accounting unit used for the asset must be included in the depreciation allocation.