Accumlated Depreciation expenses

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.