Fixed Asset Register Setup
Add and setup asset groups correctly in the Fixed Asset Register
Before you can add an
Asset Group
to the
Fixed Asset Register
it is advisable to add all accounts needed for Asset Group setup.
Step 1. Setting Up Accounts for Asset Groups
For this example we will setup the accounts needed for the Asset Group Plant & Equipment.
Depreciation accounts:
-
Click on the Chart toolbar
icon
-
Click on the Expense
tab
-
Scroll down and see if there is already a Depreciation expense account (Cashbook Plus! comes with a standard chart for account classification. This can be added to or modified to suit the user's requirements).
If you have more than one type of Asset Group, it may be worth creating Depreciation sub-accounts.
For this example we will create a Depreciation expense account for Plant & Equipment:
-
Account Code: eg. 117.01 (Note: sub-accounts must start with the same code as the main or control account. Main account is 117 Depreciation)
-
Tick Sub-Account of
check box
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Sub-Account of: 117 (Main account)
-
Description: eg. Depreciation-Plant & Equipment
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Account Type: Operating Expense
-
GST Category: 10. Non-reportable Payments
Note:
If the GST Category is grey out. Click on the
BAS
icon. Click on the
Setup
tab. In the
General
section, tick the
Activate GST in Cashbook Plus!
check box.- for new users
-
Tick the
Non-Cashbook Account (e.g. Depreciation)
check box
-
Click on the OK button to save
-
Other Depreciation expense accounts can be set up at the same time
For Example:
Asset accounts and Accumulated Depreciation (contra-asset) accounts
For this example we will create a Asset account for Plant & Equipment
-
Click on the Add button
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Account Code: eg. 410
-
Description: eg. Plant & Equipment
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Account Type: Asset
-
GST Category: 08. Capital Acquisition
-
Click on the OK button to save
For this example we will create an
Accumulated Depreciation
account for
Plant & Equipment
-
Click on the Add button
-
Account Code: eg. 411
-
Description: eg. Accum Deprec - Plant & Equipment
-
Account Type: Asset
-
GST Category: 10. Non-reportable Payments
-
Click on the OK button to save
For Example:
Profit on Sale of Assets
-
Still in Chart list
-
Click on the Income tab
-
Click on the Add button
-
Account Code: eg. 99
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Description: Profit on Sale of Assets
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Account Type: Other Income
-
GST Category: 11. Non-reportable Receipts
-
Tick the Include in Income Tax Return / Tax Report check box
-
Tick the
Non-Cashbook Account (e.g. Depreciation)
check box
-
Click on the OK button to save
Revaluation of Assets account
-
Still in Chart list
-
Click on the Equity tab
-
A Revaluation of Assets account may already exist (Cashbook Plus! comes with a standard chart for account classification. This can be added to or modified to suit the user's requirements)
-
Click on the Add button
-
Account Code: eg. 810
-
Description: Revaluation of Assets
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Account Type: Equity
-
GST Category: 11. Non-reportable Receipts
-
Click on the OK button to save
Step 2. Add Asset Groups to the Fixed Assets Register
For this example we will Add the new Asset Group Plant & Equipment
Description: e.g. Plant & Equipment
-
Depreciation account: e.g. 117.01 Depreciation - Plant & Equipment (created above)
-
Asset Account: e.g. 410 Plant & Equipment (created above)
-
Accumulated Depreciation account: e.g. 411 Accum Deprec - Plant & Equipment (created above)
-
Profit on sale of assets account: e.g. 99 Profit on Sale of Assets (created above)
-
Revaluation account: 810 Revaluation of Assets (created above)
-
Enterprise: optional
-
Valuation opening balance: auto fill
-
Valuation current balance: auto fill
-
Valuation method: seek advice and direction from your accountant
-
Management depreciation rate: seek advice and direction from your accountant
Note:
There are two Valuation Methods you can use to calculate asset depreciation.
-
Prime Cost - used to depreciated assets by equal amounts each year over its effective life.
-
Diminishing Value - uses a percentage to calculate depreciation. (i.e. the value of a depreciating asset decreases more it the early years of its effective life.)
Note:
It is strongly advised you contact your accountant for help in which method you should use and what depreciation rate to allocate to each asset group. Your accountant can look at how your business operates to determine which method is appropriate. Also consult your accountant as to when to depreciate your assets, e.g. at the end of the financial year.
- Repeat this process of allocation for each asset group you add
CSC Article ID 1630