Depreciation Master

Implementation Updated by Implementation

What is Depreciation?

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.

Overview

As per Accounting Standards, there are different depreciation rates for different type of assets. Also there are different calculative standard for depreciation.

Use Case

Suppose there is a firm “XYZ Ltd”. This a manufacturing firm and they have lots of machines as asset. They need to post depreciation on machinery every year with perfect measures.

With this option they can post depreciation entry hassle free. They don’t need to maintain excels for fixed asset.

Steps to be performed to create Bank Payment

1.Go to Fixed Asset

2.Activate Asset App

3.Go to Masters and activate Depreciation Type. There are 3 types of depreciation. We will discuss all depreciations in detail. A) Select depreciation type B) Activate GL Account Posting C) Click on Save.

4.Go to Masters and click on Depreciation Key Master

4.1-WDV Under Income Act a)->i)Enter Depreciation Key ii)Depreciation Description iii)Enter Cut off date and cut of rate (If user purchase asset after cut of date then depreciation reduces as per cut of rate) iv)Enter depreciation rate v)Select GL account for Depreciation posting v)After that click on additional Depreciation.

b)-Additional Depreciation:-i)Enter rate ii)Cut of date and cut of rate (If asset is purchased after cut of date then rate of depreciation will reduce as per cut of rate iii)Click on save.

At the end save the depreciation.

4.2.SLM Under Company Act-> i)Enter Depreciation Key and Description ii)Enter Residual Life iii)Enter Years valid for iv)Select depreciation GL account. Click on save.

4.3.WDV Under Company Act-> i)Enter Depreciation Key and Description ii)Enter Residual Life iii)Enter Years valid for iv)Select depreciation GL account. Click on save.

5.Edit-> Click on edit and select depreciation key from dropdown and make changes if required.

6.Report-> Click on report to get depreciation list.

6.1. Here user can see all saved details for depreciation key. User can download and print the report. Also user can go back to master by click on Add.

How did we do?

Asset Purchase

Depreciation Run

Contact