General Ledger - Depreciation Schedule
Menu Selection: Document - General Ledger - Depreciation Schedule
Purpose
This document allows the user to maintain an asset register and to generate transactions relating to depreciation.
Prerequisites
The balance sheet account to be posted to must already exist. The account can be established via the General Ledger - Chart of Accounts document.
Context
The Depreciation Schedule is a way of keeping and maintaining an asset register and generating transactions relating to depreciation, or wear and tear, of assets and stock. Depreciation is an allowance or provision made in the accounts of a business for wear and tear on plant and articles. A tax deduction for depreciation is allowable on plant and articles owned by the taxpayer if, during the year of income, the plant and articles were used to produce assessable income or installed ready for use for that purpose but held in reserve. This deduction allows the capital cost of plant and articles to be written off over the effective life of each item. Depreciation is not allowable on plant and articles used solely for private purposes.
If a deprecation schedule has already been created for a particular account in the Balance ledger, clicking the Acquire button will retrieve this schedule, with the updated figures. From here you can then update the information contained in the schedule as required.
Pressing the Apply button will create a credit entry in the sub account "DEPREC" the account selected, and a debit in the "TRADING" ledger in the "DEPREC" account
About This Screen
| Head of the Document | ||
| Field | Enterable? | Instructions |
| Period | No | Displays the currently signed in period. This is the period of this schedule. |
| Account | Yes | Type in the balance sheet account (or click the right mouse button). Credit postings will be made to this account in the "DEPREC" sub account. |
| Comment | Yes | Type in a comment for this schedule. |
| Grand Total | No | Displays the total amount claimed for depreciation. |
| Total Posted | No | Displays the total amount posted to the Account selected. |
Lines of the Document |
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| Asset No | Yes | Type in the Id number for this piece of equipment. |
| Description | Yes | Type in a description of the equipment. |
| Purchase Date | Yes | Type in the date the piece of equipment was purchased. |
| Original Cost | Yes | Type in the dollar value originally paid for the equipment. |
| Opening Write Down | Yes | Type in the opening written down value for this equipment. The current value of the asset (Original Cost - Current depreciation) For example, using the Prime Cost depreciation method, let Original Cost = $1000, and the yearly depreciation amount = $180 over 2 years. The Opening Write Down of the asset for the third year would be 1000 - (180 * 2). |
| Disposal Date | Yes | Type in the date the asset was disposed of. |
| Consideration | Yes | Type in the value that the asset was sold for. |
| Addition Date | Yes | Type in the date the asset incurred additional costs. |
| Addition Cost | Yes | Type in the value of any additional costs paid on the asset. |
| Value For Depreciation | No | Depending on the Method field: if Method is set to Diminishing Value (DV) then the Value For Depreciation is the Opening Written Down Value less the Consideration plus the Addition Cost - if Method is set to Prime Cost (PC) then the Value For Depreciation is the Original Cost less the Consideration plus the Addition Cost. |
| Rate | Yes | Type in the percentage rate for depreciation. |
| Method | Yes | Type in the method of depreciation for this equipment. Type in DV to specify the Diminishing Value depreciation method, and PC to specify Prime Cost depreciation schedule. |
| Prime Cost Method | No | The amount to be depreciated using the Prime Cost method of depreciation. |
| Diminishing Value | No | The amount to be depreciated using the Diminishing Value method of depreciation. |
| Written Down Value | No | The value for depreciation less the value of the Prime Cost Method field or the Diminishing Value field, depending on which Method was selected. |
| Posted | No | Displays the value posted for that line of the deprecation schedule. |
Transaction Processing
| Button | Description |
| Apply | Clicking the Apply button will create a credit entry in the sub account "DEPREC" the account selected, and a debit in the "TRADING" ledger in the "DEPREC" account. |
| Acquire | Clicking the Acquire button will retrieve the previous period's schedule, with the updated figures. |
From Here
Use the General Ledger Enquiry to check upon the results of processing at the micro-level. i.e. individual transaction appended to the account selected and the "DEPREC" account throughout the "BALANCE" and "TRADING" ledgers