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.
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
Note
Book value is shown in gray for each asset class.
The easiest way to move older assets to the new structure is
Add the above structure
edit one of the assets in each asset class so it uses the appropriate “accumulated depreciation” account
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
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.
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!