Accum. Depreciation/Depreciation expense: Custom control/expense accounts

[Panashe_Mlambo]

The separation of each account make it easier when preparing financial statements

Disclosure in terms of IFRS or IFRS for SME requires each class of assets to be disclosed separately.
eg.
Furniture & Fittings
Buildings
Computer equipment

At the moment I am not making use of the asset register on the system as it does not achieve what I need. I have created all my accounts manually and process the depreciation via journal entries. When I export my trial balance into Draftworx / Caseware its easier to map accounts to the relevant financial statements line item.

[lubos]

Added to the latest version (20.2.76)

Under Settings tab, then Control Accounts, you can create custom control accounts for accumulated depreciation.

Custom control accounts can be then selected when editing individual fixed assets

The same has been implemented for accumulated amortization within intangible assets functionality.

[Abeiku]

Great job @lubos

[Joe91]

Excellent - this is a great new feature

[San_Thida_Myo_Latt]

Thanks
If possible, allow user to choose expense account at fixed assets

[Tut]

Custom control accounts apply only to the balance sheet.

[Abeiku]

Yes but the topic is also about custom expense account

[lubos]

The latest version (20.2.77) is adding ability to select custom expense accounts for depreciation and disposal as well.

[San_Thida_Myo_Latt]

thanks, i will check and get back to you

[San_Thida_Myo_Latt]

Thanks, it’s working as expected

[AJD]

I have just got around to making changes as a result of this update. Thanks @lubos this is an excellent set up and so easy to implement.

[Panashe_Mlambo]

Thank you

[Patch]

This is an excellent addition to Manager
For those that are interested, a summary of how to produce the format listed in

Accum. Depreciation/Depreciation expense: Custom control/expense accounts

I suppose what is lost is a summary level measure of business exposure to any differences between book value and actual value. A business cost when individual assets are disposed off. It is however a rather crude measure, as old large items with a low true current value will obscure actual current business exposure. If Book value was only shown on the summary page, users would need to click on the book value of each control account (Furniture, Land & Buildings, or Motor Vehicles) to see a scree…

Goto setting select
Add a Group for each of your Fixed asset classes

After which the Chart of accounts is

Got to Settings Control accounts

Which will initially show the default system fixed asset “at cost” and “accumulated depreciation” accounts

For each of your fixed asset classes add “at cost” and “accumulated depreciation” accounts from the respective panels. Assigning them to the group you created earlier.

Note the “at cost” accounts can also be created in the chart of accounts tab.

After which your Control accounts should show all business specific Fixed asset control accounts

Returning to the chart of accounts tab they are also shown there

The order can be updated by clicking on the arrow

After which the chart of accounts shows

And the summary screen shows

Adding some actual fixed assets with depreciation

The summary screen shows

Note
Book value is shown in gray for each asset class.

The easiest way to move older assets to the new structure is

1. Add the above structure

2. edit one of the assets in each asset class so it uses the appropriate “accumulated depreciation” account

3. Use batch update, sort by “ControlAccount”, Copy the “ControlAccountForAccumulatedDepreciation” to all other assets in that fixed asset class ( “ControlAccount” group), paste the result back into Managers batch update

[Patch]

What has been implemented provides excellent flexibility and I can definitely use it to do all that I need to do.

For my use case though it would make more sense if accounts were grouped above the individual fixed asset level.

Currently accounts are associated at the individual fixed asset level

It would make more sense for my use case it I just indicated the fixed asset “Desk” was in the “Furniture” fixed asset group.

Then probably at the Control account level, the Fixed asset group/class “Furniture” was defined to use specific accounts for “at cost”, “accumulated depreciation”, “depreciation expense”, and “loss on disposal”.

Clearly this is a low priority as the existing solution works. Just thought it would make it better again for my use case. Others may not want consistent fixed asset grouping though.

[Abeiku]

@Patch

Others may not want consistent fixed asset grouping though.

Yep, the current worflow works best.

[Francesco]

Hello,
I created three depreciation expense accounts and assigned them to various fixed assets as custom depreciation expense accounts. However, when I process a depreciation run using the Depreciation Entries tab, Manager uses the default fixed asset depreciation account, and ignores the custom ones. I am not sure why this is happening, could you please help, thanks!

[AJD]

I think this has been fixed. Update to the latest version.

Issue with custom depreciation account

So I elected a custom account for depreciation of a fixed asset, still depreciation expense will debit built in expense account (fixed assets depreciation) !

[Francesco]

I thought I had the latest version but I didn’t…Thanks AJD that fixed my problem

[Panashe_Mlambo]

I have posted an issue I am having when selecting Cost account & Accumulated Depreciation Account

On this thread I am not sure if I was supposed to continue on this topic as it is more relevant