on 11-06-2015 7:56 PM
Hello.
Has anyone out there addressed the issue of differences between US state depreciation calculations by setting up more than one State depreciation area?
In my last implementation I only had to set up one area; specifically SMACRS (State Modified ACRS).
Thanks.
The answer I was looking for:
In the US, best practice dictates a single State book (depreciation area) unless the client has significant presence on Alaska (AK) or California (CA), because those 2 states differ sufficiently from Federal ACRS/MACRS so as to merit their own depreciation areas.
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This is based on reporting and I'm not sure I'd call it a best practice. If you use a single area, then there is no way to report, at a global level much less at a company code level, what the depreciation is for assets in the state of NY versus VA. There are pros/cons to using discrete area or a single one but I wouldn't call it a best practice. Whatever works for a given customer and their requirements is what should be implemented.
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