Defining asset class depreciation rates

If you are using a Part 32 book, you need to define the depreciation rates to be used for each asset class.

Define asset class depreciation rates

  1. Access Asset Class Depreciation Rate (AM06.4).
  2. Define the depreciation rates. Specify this information:
    Book

    Select the Part 32 book that you want to define the rates for.

    Type

    Select a type corresponding to an asset class.

    Subtype

    If applicable, select a subtype defined for the type and corresponding to an asset class.

    Depreciation Rate

    Specify the depreciation rate defined for the asset class by the state's Public Utility Commission (PUC).

    Note: The rates specified are annual rates. To calculate period depreciation expenses, the Asset Management application uses this formula:

    (Average Asset Account Balance * Depreciation Rate) / Number of periods

    Note: You do not have to specify data on Asset Class Depreciation Rate (AM06.4) to use this form. You can use both forms separately or in combination to meet your classification needs.
  3. To further define rates by company and accounting unit, click the Detail button and open Asset Class Depreciation Rate Detail (AM06.5).
  4. Define accounting unit rates. Specify this information:
    Book

    Select the Part 32 book that you want to define the rates for.

    Type

    Select a type corresponding to an asset class.

    If applicable, select a subtype defined for the type and corresponding to an asset class.

    Rate

    You can specify a default depreciation rate that applies to all the accounting units. If you specified a rate on AM06.4, the rate is displayed in this field. You can override the rate on individual accounting unit lines.

    Company

    Specify or select the company that you want to define rates for. The company must be valid for the asset type and book.

    Accounting Unit

    Specify or select the accounting unit that you want to define a rate for.

    Note: To use this depreciation rate scheme, you should define an accounting unit to correspond to an asset class jurisdiction with its own rate.
    Rate

    Specify the depreciation rate applicable to the accounting unit. If you defined a default rate and you do not specify a rate in this field, the default rate is used in depreciation calculations.

    The rates are defined for each asset class by the local Public Utility Commission (PUC).

    Note: The rates specified are annual rates. To calculate period depreciation expenses, the Asset Management application uses this formula:

    (Average Asset Account Balance * Depreciation Rate) / Number of periods

Related reports and inquiries

To Use
List asset class depreciation rates Class Depreciation Rate List (AM214)
Related topics