AAIs for User-Defined Depreciation
If you set up user-defined depreciation for the assets, you must set up these AAIs:
SDA AAI
SDE AAI
DSxxx AAI
DSA AAI
The system uses the SDA AAI to determine which account to use as the secondary accumulated depreciation account.
The system uses the SDE AAIs to determine which accounts to use as the secondary and tertiary depreciation expense accounts. In general, you set up the SDE AAIs as follows:
SDE AAI |
Description |
|---|---|
SDE1 |
Use for the secondary depreciation expense account. |
SDE2 |
Use for the tertiary depreciation expense account. |
The system uses the DSxxx AAIs (where xxx is the depreciation category code that you specify on Fixed Asset Constants) to determine which accounts to use for depreciation statistical amounts. You must specify accounts for these DSxxx AAIs:
DSxxx AAI |
Description |
|---|---|
DS1xxx |
Use for year-to-date depreciation statistic. |
DS2xxx |
Use for original-value depreciation statistic. |
DS3xxx |
Use for base-value depreciation statistic. |
DS4xxx |
Use for general-ledger depreciation statistic. |
The system uses the DSA AAIs to distinguish the Inception to Date asset balance for the ledger type that is specified in the AAI from either the Asset Account Balances File table (F1202) or the Account Balances table (F0902).
DSA AAI |
Description |
|---|---|
DSA1 |
Use for Formula Element 57 for the AA ledger from table F1202. |
DSA2 |
Use for Formula Element 58 for the current ledger from table F1202. |
DSA3 |
Use for Formula Element 59 for the ledger specified in Description Line 4 from table F1202. |
DSA4 |
Use for Formula Element 60 for the AA ledger from table F0902. |
DSA5 |
Use for Formula Element 61 for the current ledger from table F0902. |
DSA6 |
Use for Formula Element 62 for the ledger specified in Description Line 4 from table F0902. |
If you compute revaluation for the assets, you must set up the FRxxx AAIs.
The system uses the FRxxx AAIs (where xxx is the revaluation code that you specify on Revaluation Index) to determine which accounts to use for revaluation offset amounts. You must specify accounts for these FRxxx AAIs:
FRxxx AAI |
Description |
|---|---|
FR1xxx |
Use for the cost revaluation offset account. This AAI is mandatory if you compute revaluation. |
FR2xxx |
Use for the offset account for the current year portion of accumulated depreciation revaluation. This AAI is mandatory if you compute revaluation. |
FR3xxx |
Use for the offset account of the prior year portion of accumulated depreciation revaluation. This AAI is optional if you compute revaluation. |
The revaluation program calculates revaluation amount and adjustment on an account-by-account basis, based on the nature of the account. The revaluation program calculates the adjustment for all of the cost accounts, accounts that have a balance character code of 1, and adds the adjustment amount for the cost accounts. Create the entry to adjust the cost account with the offsetting entry to go to the account that is specified in the AAI for item FR1xxx. Accumulated depreciation accounts, accounts that have a balance character code of 2 and 3, are handled in a similar manner with the current year adjustment calculated separately from the beginning balance adjustment. Accumulated depreciation accounts are offset to two separate accounts as specified by the AAIs for FR2xxx; the current year portion; and for FR3xxx, the prior year portion.
If you direct the revaluation program to use the inception-to-date method, the adjustment for each AAI is calculated by year. Within each year, the adjustment is calculated for the year-to-date activity for these three account types:
Cost
Accumulated depreciation
Secondary accumulated deprecation
Amounts for prior year accumulated depreciation are added together to update AAI FR3xxx, the prior year account. The current year portion updates AAI FR2xxx, the current year offset account.
The secondary accumulated depreciation account uses the same business unit and object accounts as AAIs FR2xxx and FR3xxx, along with the SDA AAI subsidiary value.
AAIs FR1xxx and FR2xxx are required. If FR3xxx is not set up, the system uses FR2xxx. The xxx corresponds to the Revaluation Code UDC (12/RI) values. A different set of offset accounts can be defined for each index. You can set up FR1, FR2, and FR3 as defaults. For AAIs FR1, FR2, and FR3, the Object field is a required field. If the Business Unit field is empty, the offset uses the Responsible Business Unit from the Asset Master table (F1201). The offset accounts are updated with Balance Character Codes of A, B, and C.