DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Accumlated Depreciation expenses


#1

Ok I have just entered the fixed assets and the accumlated depreciation(which is the depreciation added up over the assets usefull life so far) but it automaticly put the accumlated depreciation in the expense account when it should of put just that years depreciation in. so what am I doing wrong.


#2

The procedure for building a current fixed asset list for previously purchased and partially or completely depreciated items is a little tricky, but you only have to do it once per asset:

  1. Make sure the Fixed Assets tab is enabled. (You seem to have already done that.)
  2. Create the asset by clicking on the New Fixed Asset button. Complete the entries. (You already seem to have done that, too.) If the asset is already created, skip this step.
  3. Under Reports, select Opening Balances in the General Ledger group.
  4. In the Opening Balances report, click on the blue number in the Debit column next to Fixed Assets.
  5. In the Opening Balance Transactions list that appears, click Edit next to the asset. Enter your purchase price for the asset. (Remember, you are working here inside the debit column of this account, so the number you enter adds to assets.) If you are trying to fix an entry you already made, there may be a number other than zero showing. Edit it to the purchase price. Click Update.
  6. Navigate again through Reports to the Opening Balances report. This time, click on the blue number in the Credit column next to Fixed Assets, Accumulated Depreciation.
  7. In the Opening Balance Transactions list that appears, click Edit next to the asset in question. Enter the accumulated depreciation to the start date of your company in Manager. (Although the list heading is the same as in Step 5, you are working inside the Credit column of the account.) If the asset is fully depreciated, enter its full purchase price. Click Update.

Your Fixed Assets list now shows the book value of the asset on your start date. For depreciation since the start date, click on the blue number for that asset under Accumulated Depreciation in the Fixed Assets register. Click New Depreciation Entry and proceed as normal.

For new asset purchases, create the asset, then Spend Money from a bank or cash account and allocate the purchase to Fixed Assets and the sub-account for the asset.


#3

I have done just what you have said but in the P&L for the compartive year in depreciation it has the total of accumlated dep from opening balances but the real(2014) depreciation expence is only some of that for the comparative balance.
total accumlated dep opening balance 3564.00
Depreciation Expense for 2014 should be 1408.00 for that year but is showing 3564.00 opening balances
Depreciation Expense for 2015 is correct
If I put the opening balances to total 1408.00 then the assets are not at true value


#4

Before you do anything else, verify that your P&L statement has the right dates. When you create a P&L report, you should normally set the From and To dates to match the financial reporting period. It should not go from the inception of the business until the current date, unless that is the period you are analyzing. If that simple check does not reveal your problem, go back to the asset entries.

Now that you have created all your assets and their opening balances, there is a quicker method for troubleshooting than the one I originally described.

From your Summary page, click the balance next to Fixed Assets. The list that appears includes transaction types. Here are some things to check:

  1. Make sure opening balances are shown only for assets you owned before starting with Manager. Assets acquired since should show different transaction types.

  2. Be sure each asset has only one opening balance.

  3. Check the dates for opening balances. All should be the first date you started using Manager.

  4. Count the number of assets with opening balance transactions. Then navigate to Reports > Opening Balances and click on Fixed Assets in the Debit column. The number you counted should match the number of Opening Balance Transactions.

Now go back to your Summary page and click on the balance for Fixed assets, ccumulated depreciation. Check these items:

  1. You should have opening balances, all on your start date, for assets you owned on the start date. These might be partial depreciation or they might be complete, depending on how long you’ve owned them and your depreciations schedule. But you should have the same number of opening balance transactions as you did under Fixed Assets.

  2. Make sure any depreciation expense taken since starting with Manager is listed as Fixed Asset Depreciation. The sum of these entries for the current year is what should show in the P&L statement.

If anything does not line up the way I’ve described, that is where to look for your problem. Make the appropriate edits.


#5

While sleeping on it!. I relized what it was. I was putting in opening balance(accumlated dep from a 2015 dep schedule less the current(2015) dep) but the opening balance was for the past 3 years and I am only doing the last year(2014) so I am going to try and do my start date for 2013 do the opening balances less 2014 and 2015 and then put in 2014 dep and then 2015 dep. That way when I do a comparative 2014 year it will show up as the right dep expence and when I do a 2015 year that will also show up as the right expence.