AM06.5 – Asset Class Depreciation Rate Detail

About AM06.5

Use Asset Class Depreciation Rate Detail (AM06.5) to define asset class depreciation rates by accounting units. This form lets you use a single asset type (an therefore a single set of asset and depreciation accounts) across a company, and define a unique depreciation rate for each accounting unit. You can use this form as an extension of or in place of the functionality offered by Asset Class Depreciation Rates (AM06.4), which lets you define a depreciation rate for a type and subtype.

More information: 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. NOTE You can combine both strategies. You can, for example, group all switch-type equipment under one asset type, using subtypes to differentiate between the various classes of switches, and use accounting units to reflect the rate variations depending on jurisdictions.

Updated files (14)

Referenced files (10)

Related forms

• AM06.1 Type
• AM06.2 Types
• AM06.3 Product Category
• AM06.4 Asset Class Depreciation Rates
• AM06.6 Depreciation Allocation

Program calls

Invoked programs (12)

ACAC, ACTA, API4, IFAC, IFAU, IFCU, IFLU, IFOB, IFSG, IFUP, SLSE, SLSU