Group Asset Depreciation

In many countries, local tax regulations require companies to depreciate assets in a composite or aggregate form, rather than individually, for each asset.

You can use the Group Depreciation feature to set up logical groupings of assets based on regulatory requirements and your own business needs. These logical groupings of assets are called group assets.

Group asset depreciation helps you to:

• Reduce data entry requirements because you define depreciation parameters at the group asset level rather than at the individual asset level.

• Handle complex transactions for group assets and their member assets.

For example, let's say you work for a major corporate enterprise and your company wants to pool together collections of similar assets to ease financial reporting. You can add many individual assets to the group that were placed in service in different years, but maintain only one depreciation amount for the group. Usually, the Calculate Depreciation process calculates and stores depreciation amounts at the group level.

Use the Group Depreciation feature to help you to accommodate many global regulatory requirements, including:

• United States Telecommunications (FCC) and Utility (FERC) compliance reporting.

• Canada Capital Cost Allowance (CCA) compliance reporting.

• Indian group asset management and compliance reporting.