Specify Group Asset Rules

Specify group asset rules in the Group Asset Rules tab in the Financial Details section of the Add Asset page.

This table lists the group asset rules and descriptions of how you set up these rules:

Name	Description
Recognize Gain or Loss	See the Group Asset Options topic in the Implementing Assets guide for information on this rule.
Recapture excess reserve checkbox	Enable this checkbox to indicate that the accumulated depreciation of a group asset can exceed its recoverable cost without triggering the recognition of a gain. See the Group Asset Options topic in the Implementing Assets guide for more information on this rule.
Limit net proceeds to cost checkbox	You can enable this checkbox only if Recognize Gain and Loss is set to Do not recognize. If you enable this checkbox, the amount of proceeds (net of cost of removal) that can be added to the accumulated depreciation is limited to the recoverable cost of the retiring member asset. See the Group Asset Options topic in the Implementing Assets guide for more information on this rule.
Terminal Gain or Loss	See the Group Asset Options topic in the Implementing Assets guide for information on this rule.
Reduction Rate Percent	Enter the percentage to use as the reduction rate. The application applies the reduction rate is when calculating the depreciable basis for a group asset. The reduction rate is set up as a default rate for the group asset. You can update the default reduction rate for the member asset when you perform a transaction on the member asset. It's used to satisfy the 50 percent rule in Canada and India. The Reduction Rate Percent field is enabled only for group assets and if the depreciation method used has the following depreciable basis rules: Year End Balance with Positive Reduction Amount Year End Balance with Half Year Rule
Addition option	Enable this option to apply the reduction rate to member asset addition transactions.
Financial transactions option	Enable this option to apply the reduction rate to member asset adjustment transactions.
Retirement option	Enable this option to apply the reduction rate to member asset retirement transactions.
Over Depreciate	In the Over Depreciate field, specify whether the group asset accumulated depreciation can exceed the group asset cost. Select one of these options: Allow: The group asset accumulated depreciation can exceed the group asset cost, but depreciation stops for the group asset when the accumulated depreciation is greater than the recoverable cost. Allow and depreciate: The group asset accumulated depreciation can exceed the group asset recoverable cost, and depreciation continues for the group asset until the group asset cost becomes zero. Note: This option is allowed only for rate-based depreciation methods. Do not allow: The group asset accumulated depreciation can’t exceed the group asset recoverable cost. The application checks whether the accumulated depreciation is greater than the recoverable cost whenever a transaction occurs that affects the group asset cost or accumulated depreciation, such as additions, adjustments, depreciation, retirements, and group reclassifications. This option is selected by default.
Tracking Method	See the Group Asset Options topic in the Implementing Assets guide for information on this rule.
Depreciate By	This field is available only if you select Calculate member asset amount as the tracking method. Use this field to select how member asset depreciation is calculated. Select one of these methods: Group method Member method See the Group Asset Options topic in the Implementing Assets guide for more information on this rule.
Sum member asset depreciation to group checkbox	If you enable this option, group depreciation is calculated as the sum of the calculated depreciation of all member assets.