Depreciate Assets by Components

Beatrice

Hi!

I am having the following problem regarding depreciation of assets by component.

I have a Main Asset (M1), which costs 10,000.

Under M1, I have two components as follows:

C1: 6000, depreciation rate is 12 % p.a STL

C2: 4000, depreciation rate is 10% p.a STL.

Say I want to depreciate asset components separately, I have noticed that depreciation of individual asset component does not impact on the main asset.

Because I was thinking that when depreciating an asset component, the book value of the main asset is supposed to decrease by same amount of depreciation calculated on the asset component.

Can anyone please clear me on this issue?

Thanks in Advance.

Beatrice.

sgg

Depending on your setup on the FA Setup Form,
The main asset may be setup for statistical Purpose Only. In this case, you will only Post Transactions to the Sub-Components only. Thus you will not have to worry about the Depreciation Rate of the components since each component asset will have its own Depreciation rate.

As seen in the situation you sited, it is obvious that the Main Asset is for Statistical Purpose. Therefore, you may Depreciate the components as you wish and the Resultant Depreciation will be seen on the Main Asset when you print your FA Reports and Choose Group Totals By Main Asset.