Has anyone set up more than one State depreciation area in the US?

[Former Member]

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.

[Former Member]

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.

[NathanGenez]

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.

[Former Member]

Then perhaps it is more accurately stated that it is a common practice.

[NathanGenez]

I agree that it would be an improvement.  I've usually just set up one but would happily set up more if the customer wanted it that way.