Depreciation fixed assets, which is an expense account (using the Manager dedicated account), shows up in the chart of accounts ok but does NOT appear in the drop down menu when trying to create a journal to post depreciation.
Could some one advise please. This is a nuisance in that depreciation expenses need to be brought into the ledger via journal.
The dedicated Depreciation Account is a Control Account and therefore doesn’t appear in the drop down menus as it can only receive expense entries via the Fixed Assets tab Depreciation feature. If you want bring to account depreciation externally of the Fixed Assets tab, need you need to create your own P&L Depreciation Expense account and BS Prov for Depreciation account.
Here is the Guide for the in-built depreciation system
I’ve figured out how to add a fixed asset and depreciate it. Which is great. But while the fixed asset in question shows up in assets ok, its purchase is an issue. If I bought it using cash, or bank loan, or accounts payable doesn’t seem possible. The amount of the value of the fixed asset shows up in equity, which is not acceptable. Anyone know how to fix this. Perhaps goes to the original poster and wanting to use the journal to record these types of purchases, depreciation, etc.
Bottom line I would use this system if I can “buy” the fixed asset with cash, a liability, etc. I can’t seem to edit the transaction to make this happen.
@Nomullies, you can record the purchase of a fixed asset as described in this Guide:
What exactly do you mean by “The amount of the value of the fixed asset shows up in equity, which is not acceptable?” If you follow the instructions linked to above, the purchase cost of the asset will be added to the Fixed assets account, which is a control account created automatically when the Fixed Assets tab is enabled. If you are doing things any other way, the asset cost and depreciation features of the program will not work.
There is nothing compulsory about using the Fixed Assets tab. You can construct your Fixed Assets to look any way you want by using the Chart of Accounts, but it means you will need to do your own depreciation provision accounts as well.
I did get into the guides. But I don’t think you can create a dedicated contra account like Accum. Dep’n to exist right beneath it’s related fixed asset account. But hey I’m not complaining. This is by far the best single user freeware I’ve found.
Ok I am even more amazed. But no numbers in the example. A typical adjustment would be dr dep’n expense cr xxxProv for Depn. Then I’d need the xxxProv for Depn to show up on a balance sheet and be deducted from its main account (above say Furniture and Fittings) into a subtotal. You seem to take on every challenge…
By default, the contra accumulated depreciation account is created as an asset account. If you are referring to having individual contra accounts for individual assets, you can do that just as easily as you can have individual asset accounts. I’m pretty sure that’s what @Brucanna meant. To my thinking, that would all be a lot more work than it’s worth.
If you use the built-in fixed asset module, it all works perfectly. The balance sheet stays nice and simple. If you need the breakdown, export the Fixed Assets register or generate a Fixed Asset Summary under Reports. I’ve looked at a lot of balance sheets from all different sorts of companies in my day, and I don’t recall ever seeing individual assets at the balance sheet level. When I look at a company’s balance sheet, I don’t want to be bogged down in individual computers, drill presses, fork lifts, store fit-outs, and the like. Maybe a few major categories. Look at a few annual reports to see what I mean.
That said, if you want the detail on the balance sheet, Manager will do it for you.
Ya it’s not a corporate thing with me. It’s high school accounting class and trying to find software that is easy for students to download, install, and use given a set of instructions. It helps if they can see accounting formats similar to what they’ve been learning in class. Hence the requests on my part. I may create a simple assignment with only basic service based accounts, then a more complicated one using the tabs as you suggest. Thanks for the quick responses. Appreciated.
@rupelja, it is not clear what example you are referring to. But, if you want to know how to enter depreciation, read this Guide: Depreciate fixed assets | Manager. Creation of the account, Fixed assets - accumulated depreciation, is automatic.
Okay, I understand you used a journal entry. But I am confused since Manager uses a specific input module to handle depreciation. If you like, I can send some screen shots of what I am trying to do.
My preference would be to use a journal entry for entering depreciation. All the questions I have pertain to an Accounting class project I teach.
Some context, I am an adjunct professor at a community college in California teaching Accounting and Bookkeeping courses. I am extremely appreciative that Manager Accounting is free via the desktop version. If appropriate, I would like the opportunity of discussing the possibility of setting up student accounts for the online version of Manager.