What are the best practices for entering fixed asset and depreciation?
Let say I purchase 10 computers over a period of one year - 2 in Jan, 3 in Mar, 2 in Aug and 3 in Oct. The computers are all same model and same specs.
That depends on what you might need in the future. Suppose in two years time you decide to sell 5 of them. Then it could be better if you had them as a separate item, as you can track exactly which machines are you selling.
Manager is set up to account for fixed asset item by item. Do that you can enter depreciation for every item if you wish.
It very convenient when it comes to disposal.
You might also be required by law to account for each asset individually. Even if not, though, that would be the normal practice. Also consider, though, whether local regulations allow you to expense the items fully, especially things with relatively short lives like computers. In many jurisdictions, computers used to be considered depreciable assets but now may be expensable. Read this Guide: Manager Cloud.
Appreciate all your answers.
So it is best to separate every item, even though we purchased multiple units of the same product on the same date, am I correct?
Yes, unless you can be certain in advance that you will verify, manage, and dispose of the items identically for their lifetimes. Even then, it would be unusual to treat multiple assets as one item.
How about the purchase of 100 student tables and 100 chairs, do we account them as individually?
I believe the answers is in Tut’s post: Yes, unless you can be certain in advance that you will verify, manage, and dispose of the items identically for their lifetimes.
The answer to bulk up or do single entry items really depends on the item involved and the business.
As to the tables and chairs you could bulk them up into two items - tables & chairs.
Especially as there items will probably last a very long time so you don’t need to create 200 items. If you need to replace one, then just treat the replacement as a repairs & maintenance item as you will still have 100.
The computers are a different matter, they have serial numbers for traceability and one could self destruct at any time.
Take a function hire company, they may capitalise / depreciate all the initial purchases in bulk groups - tables, chairs, cutlery, table cloths etc, but expense any replacements without adjusting the fixed assets for a lost spoon or fork.
I will enter them individually, if they are similar products just drug and duplicate in a spreadsheet and import them into Manager. You will be glad you did, you could always do a fixed asset count and also conveniently dispose off unwanted ones/broken ones.
Also you will have to tag all of them with serial numbers. I like to keep my Fixed assets that way.
It will be easy in small company, but in a big Company my advice is get a fixed asset clerk. Or employ me.