Hi @lubos and everyone. Can i request that you add the Feature to specify period in Fix Asset Module like the Summary Tab?
Scenario is that I have recorded my depreciation entries (Straight Line) for my assets for its entire useful life. I saw this as alternative for not having recurring depreciation entries. However, now that i have recorded all the depreciation entries, my fix asset module now reports as if my assets are fully depreciated.
If you could add a feature wherein the depreciation show the current depreciation amount and not for the whole period?
It is showing as fully depreciated because I have recorded all monthly amortization - including future depreciation entries (year 2024-2026). I did this to not go back monthly just to recognize it’s depreciation.
Indeed this can be an option. However, the report will not give other information that are stored in custom fields.
I agree with you on this, but since the system does not have the recurring depreciation entries, we opted to just record all depreciation entries in advance. I only request if perhaps @lubos can implement the option to select the period just like in summary tab.
I’d be happy if we could have the recurring depreciation entries also.
This is not recommended practice. You can really not depreciate into the future as there are many variables that may change the expected lifespan that may have you discard/sell the asset before its time and then you have to delete all depreciation entries you will have wrongly lodged as expenses.
Depreciation is meant to spread the cost of an asset over a specific period of time so rather than showing it as a one time expense in a single accounting year for tax purposes (net profit calculation) it is spread to be more reflective of the expense spread over accounting years.
Furthermore it is not difficult nor time consuming (6 clicks) even if done monthly to use the Depreciation calculation worksheet (reports) to depreciate all the fixed assets.
I believe the issue is Manager’s depreciation functionality is not complete. So while the work around is not ideal, it is a reasonable attempt to use the functionality Manager has.
Hi @Tut, I don’t think we have misused the program here. We only have recorded the entries simply because we don’t want to do this every month.
@eko , these steps we’ve taken is only to supplement the lack of the system for straight-line depreciation or the recurring depreciation entry. We know these variables you are talking about and have thought of the same before doing so. However, we have deemed it efficient for us to just record it in advance. The 6 clicks is not difficult nor time consuming if you are only handling one (1) company, and company has 2-3 assets only. Think of an accounting firm that handles a number of companies and numerous assets each company.
This has been considered as well. But we are only doing this for assets which the company deemed to be used within its useful life: no disposal. If you purchase more assets, I believe you record them as Separate asset correct? Only that the chart of account is the same. So it’s a separate depreciation entry.
Although these are future expenses, I believe the principle is just the same with recurring entries, only that this is already recorded. I disagree that this is not a good practice. It is using the functionality of Manager efficiently. Should assumptions change in the future, there is no problem with deleting entries especially that Manager has the Audit trail for all entries. Nothing will be unaccounted for.
Don’t cross-post the same question or comment in multiple topics.
Your arguments in several posts there and here are related to the absence of Straight Line depreciation automation (you also had difficulty using the clone function).
I got sidetracked by your posting about already recording expenses that will realize in the future. You explain that doing this is a coping mechanism to have fewer entries to do and therefore found acceptable for the several businesses the accounting firm serves, despite being questionable accounting practice.
@eko the above was main point of this topic. I just have pointed the reasons to where my request was coming from. Although this might be similar to the other topic, I believe it’s still a different request.
Recording in advance as a questionable accounting practice is subjective. There is nothing wrong nor would result to inaccurate figures in this.
In recurring and automatic depreciation, the “Period” meant the Period you set for start and end of the entry. Like the below.
In this topic, since I have recorded all entries including future ones, the request is to limit or set period in the Fix Asset Tab so that it will not include those future entries (like the summary tab).
