1. Accounting
  2. Fixed Assets Management
  3. Managing Assets
  4. Group Tax Depreciation

Group Tax Depreciation

To use group tax depreciation methods for a group of assets, do the following tasks:

  1. Create an alternate depreciation method to use for group tax depreciation.

  2. Define assets for group tax depreciation.

  3. Create a group master record for group tax depreciation.

  4. Run Asset Depreciation for the group of assets.

  5. Generate an Asset Depreciation Schedule Report. For more information, see Generating Asset Reports.

Create an alternate depreciation method to use for group tax depreciation

  1. Go to Fixed Assets > Setup > Alternate Methods.

  2. Provide values for the fields and be sure to check the Pool Flag box. For more information, see Creating Alternate Methods (Tax Depreciation Methods).

  3. Click Save. The next step is to define the assets for group tax depreciation.

Define assets for group tax depreciation

  1. Go to Fixed Assets > Lists > Assets.

  2. Select the asset record to be included in the group depreciation.

  3. Click the Depreciation History subtab of the asset record

  4. Click New FAM Alternate Depreciation Method.

  5. In the Alternate Method field, select the group tax depreciation method that you created. Notice that the Group Depreciation box is already checked.

  6. Enter the Book Value (NBV).

  7. Enter or edit values in the other fields.

  8. Click Save.

  9. Repeat steps 1 to 8 for as many assets in the same subsidiary until you have defined all assets that are required in the group. The next step is to create a group master record for group tax depreciation.

Create a group master record for group tax depreciation

  1. Go to Fixed Assets > Lists > Assets > New.

  2. Type a name for this group master record.

  3. On the General subtab, select a Subsidiary. The subsidiary of this group master record must be the same as the subsidiary of the assets defined for the group depreciation.

  4. Set Original Cost and Residual Value to zero.

  5. Provide values for the following required fields: Asset Type, Accounting Method, and Asset Lifetime. Asset Type can be of any value.

  6. Provide values for the other fields.

  7. Click Save.

  8. Click the Depreciation History subtab.

  9. Click New FAM Alternate Depreciation.

  10. In the Alternate Method field, select the group tax depreciation method.

  11. Check the Group Master box.

    Group Master box is available only if the selected Alternate Method is a group depreciation method (Group Depreciation box is checked).

  12. Click Save.

To run Asset Depreciation for the group, see Asset Depreciation.

To generate a Depreciation Schedule report for the group, see Generating Asset Reports.

After assets have been depreciated, you can open the group master asset record and view its depreciation history. The FAM Alternate Depreciation Sublist can be found in the Depreciation History subtab of the asset record. Click the Depreciation Histories link to view the transactions. The Schedule filter in the Depreciation History page provides the following options:

Related Topics

General Notices